Using blockchain technology, smart contract of the insurance agreement made between the insurer and the insured is created and is coded to get executed autonomously. This helps drastically reduce the operational cost involved in collecting and storing documents and processing claims, said Chihhin Kuo, industry analyst at Taipei-based, government-backed research institute MIC (Market Intelligence& Consulting Institute).
“Currently, Taiwan has several insurance companies that have adopted blockchain technology to their travel inconvenience insurance packages and the technology has speeded up the process significantly.” said Chihhin Kuo.
“The filing and settlement of a travel inconvenience insurance or travel medical insurance claim require external data from airlines or large hospitals. Therefore, reliable and trustworthy data from external organizations is insurance companies’ top concern when deploying blockchain and smart contract technology to automate the insurance claim settlement process.”he added.
