The Property and Casualty (P&C) insurance industry deals with a large amount of claims data for multiple lines of business, ranging from houses to vehicles. Standard mechanisms to process claims require multiple data entry points from numerous sources and coordination among various parties simultaneously. This kind of sensitive exchange of data is a challenging task for insurers today, involving high risk transactions between multiple stakeholders and linking and tracking this web of data and its exchange to outcomes such as loss expenses incurred, fraud detection, and impact on underwriting. Switching to blockchain-enabled smart contracts will help automate this process and put in place a digital audit trail, thereby reducing risks significantly. Transactions made on blockchain are immutable in nature, and hence highly secure and almost impossible to tamper with, making blockchain extremely suitable for processing claims in the P&C industry.
To understand the potential of blockchain in the industry and present a way forward for its adoption, this viewpoint explores the technology with a keen focus on:
Blockchain’s adoptability and potential in P&C claims processing
Assessment of blockchain in P&C claims processing using Everest Group’s prioritization framework
Challenges to blockchain adoption in P&C claims processing
