<\/p>\n
BLOCKCHAIN: WHAT WE KNOW AND HOW WE CAN APPLY IT TO THE INSURANCE SECTOR<\/span><\/p>\n By Ruben Nova<\/span><\/p>\n There has been much talk in recent months about Fintech, But what is known about Blockchain so far? As part of my research, I have had the opportunity to Blockchain is a distributed ledger, with Blockchain is a Firstly, it has the property of Blockchain arises from the creation of Bitcoin. The technology already This means that anyone can be judge and APPLICATION IN THE INSURANCE SECTOR As a result of this technology, smart contracts have been developed, which involve the execution of a contract or As an example, let’s imagine an agricultural insurance. The With all this information, quickly and without the insured having Starting from the situation that we are still in a beta phase, insurance companies are investing in investigating possible use cases, and consortia such as B3i (formed by companies such as With all this movement, initiatives such as A SMALL CONCLUSION With this revolution in mind, I believe that Blockchain has great potential in our sector. Due to its intrinsic characteristics, large It is true that we are still in the initiation phase and that we have BLOCKCHAIN: WHAT WE KNOW AND HOW WE CAN APPLY IT TO THE INSURANCE SECTOR By Ruben Nova There has been much talk in recent months about Fintech, Insurtech, cryptocurrencies, Machine Learning, Artificial Intelligence and Blockchain. But what is known about Blockchain so far? As part of my research, I have had the opportunity to attend […]<\/p>\n","protected":false},"author":1,"featured_media":8453,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[49],"tags":[],"class_list":["post-9497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/posts\/9497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/comments?post=9497"}],"version-history":[{"count":0,"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/posts\/9497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/media\/8453"}],"wp:attachment":[{"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/media?parent=9497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/categories?post=9497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/business.uc3m.es\/en\/wp-json\/wp\/v2\/tags?post=9497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nInsurtech, cryptocurrencies, Machine Learning, Artificial Intelligence and
\nBlockchain.<\/span><\/p>\n
\nattend numerous conferences that have addressed this issue from different
\nperspectives: general, technological, legal, business… In all
\nof them I have met with different speakers and attendees, who are still
\nin an initiation and testing phase of what this
\ntool can become. It is the most disruptive technology for the insurance sector
\nwithin all the areas that Insurtech encompasses.
\ndifferent characteristics, that act
\nunder the same rules or protocols, which can give a glimpse of a profound change in many
\neconomic sectors. Many experts predict that 20% of insurance
\ncompanies will apply, in one way or another, Blockchain in their companies
\nduring the next 2-3 years.
\ndatabase distributed by nodes of the chain, cryptographically protected,
\nrelated to each other, among the participants of the chain.
\nimmutability. This means that once
\na transaction is recorded in a Blockchain, it cannot be deleted,
\nand being distributed, all participants in the network have the same exact
\ncopy, can participate in the system and act as a validator. This means that, in the event of an attempt by a
\nthe network reliability, auditability and traceability.
\nexisted years ago, but it was not until Satoshi Nakamoto created this
\ncryptocurrency in 2009, when the potential of Blockchain began to be considered.
\nSatoshi (it is said to be a pseudonym that includes about 5 people), created
\nBitcoin with the ideal of decentralizing banks and governments.
\npart of the process, allowing P2P transactions, and transforming centralized
\nschemes into a distributed network between parties that eliminates intermediaries.
\nIn this way, the chain is endowed with blocks of efficiency, savings and
\nreliability, a fact that makes many call the blockchain \u201cthe
\nmachine of truth\u201d.<\/span><\/p>\n
\npolicy automatically, with the methodology if, then… This means that, if one of the
\nconditions stipulated in the policy or contract is met, it unlocks the insured
\nsum, given that the participants of the Blokchain network (whether public or
\nprivate), verify that the conditions have been met and validate the
\ntransaction.
\nfarmer signs a smart contract with an insurance company in which, in the
\nevent that a storm causes the loss of part of the crop or
\nall of it, the insurer mitigates the loss with the payment of the agreed
\ncompensation. The particular conditions of the policy are defined
\nin a Blockchain and, when the event occurs, the insurer can verify through
\nmeteorological information platforms or an oracle (tools
\nor third parties that verify that the stipulated conditions have been met),
\nin addition to taking photographs of the land using a Drone, to check the
\nstatus of the same.
\nto make the claim, the contract is executed and the payment of the insured
\nsum is made. This, in addition to saving management costs, implies
\ncustomer satisfaction and loyalty, eliminates fraud attempts, and can
\nserve as a prevention tool.
\nAllianz, Munich Re, Zurich and Swiss Re among others) and the consortium formed in
\nSpain Alastria (formed by companies such as Mapfre, Reale, Banks such as La Caixa,
\nand other large national and international companies) are being formed.
\nFizzy (AXA), a flight delay and cancellation insurance (between Paris and
\nNew York) in which the insured, in the event of a delay, has the
\nmoney before taking the plane; Maersk, a
\nmaritime giant that uses Blockchain for traceability in the
\nmaritime transport of goods and ensures the process; or Everledger, a
\ncompany that ensures the traceability and authenticity of diamonds through
\nBlockchain. Other initiatives are Lemonade, for home insurance, Pay as you
\ndrive, which adjust your premium to the way you drive and insurance
\nper use.
\ncompanies are betting heavily to give a disruptive change to the current
\ninsurance system. The entry of smart contracts represents a paradigm shift, given that until now an insurance company paid an amount
\nfor a certain contingency, and with the new system they can help to avoid that
\ncontingency and the consequent payment of compensation, thus strengthening its
\npreventive character.
\nto continue investigating, adapting to the needs of users and
\ncompanies, and develop a regulation that allows the new era
\nof the Insurtech world to be possible.