This article is a continuation of how the blockchain impacts the insurance industry – Part 1. The authors supplement and summarize the CB Insight research report – How Blockchain is Disrupting Insurance.
(3) Health insurance
People go to the hospital to solve the pain of the body, but health insurance is full of “pain points”. CB Insight is an example of a US medical system. Imagine that you see a doctor and seek physical therapy today because of a leg injury. The physiotherapist must get complete treatment information from the hospital and doctor where you have seen the leg injury. At the same time, help you treat the hospital for the leg injury. Personnel may be painfully asking for sufficient information from different units and must obtain the prior consent of your insurance company before major treatment in order to properly apply for claims. Every unit on this complex link has different information. It takes a lot of time to integrate these data about you, not to mention that different units may be based on different information security or privacy rights within the organization. The requirements do not reveal the information needed. The number of executives in the US medical system has soared. The number of executives in the US medical system has grown more than 30 times between 1970 and 2009, but the number of doctors has grown slowly.
No wonder CB Insight quoted a report stating:
The medical industry has stumbled into the digital age through the back door: a large and expensive electronic medical record system, most of which were not carefully considered during the installation and implementation of these systems for the overall medical care system – including education, visits, workflow, and Research – Impact.”
In 2017, the United States was the hospital’s insurance claims, and the amount of refusal to pay was as high as $262 billion. CB Insight pointed out that “blockchain technology can return control of medical information to patients and expose patients to this information on a case-by-case basis. It forces companies and medical care providers to exchange patient information on different system interfaces. , using the blockchain technology medical records for each patient records can create an encrypted signature (cryptographic signature) on distributed books. this signature to each document marked encryption of the index and add a timestamp (timestamp) But there is no need to actually store sensitive data on the blockchain .”
“Every time the content of the document is changed, it will be recorded on the shared ledger, allowing the insurance company and the medical care provider to verify the medical information between different organizations. The blockchain can also be limited to allow for changes to be set. At the same time as the requirements of the regulations, the information is also anonymous and available for research use.”
The existing reinsurance system is extremely complex but notoriously inefficient. If anyone has a chance to take a look at the reinsurance contract, they will be amazed at the thickness and complexity of the text. A reinsurance contract usually takes a few months to negotiate with the reinsurance company and the insurance company, because the insurance company like you and I will seek several reinsurance companies to insure, and the file format and content required by each reinsurance company are not to the same extent, different document standards often derive differences about how contracts should be implemented.
According to CB Insight’s analysis, “The blockchain has the ability to use the shared ledger to simplify the exchange of information between insurance companies and reinsurance companies and to correct existing reinsurance processes. Transaction details such as blockchain, insurance, and losses can be covered. The company and the reinsurance company’s computer system are presented simultaneously, reducing the need for different agencies to check each other’s internal records for individual claims.”
“PwC estimates that just by increasing the efficiency of operations, the blockchain can save $5 billion to $10 billion for the reinsurance industry. It is finely demolished to individual reinsurance contracts, and it is estimated that each reinsurance contract can save 5%-10%. insurance fee.”
CB Insight points out that the blockchain has actually been used in the reinsurance industry. For example, Allianz and Nephila reinsurance companies use blockchain technology to perform catastrophe insurance swaps through smart contracts. At the same time, AIG, Allianz, Aegon, and Swiss Reformed the B3i group, which just released a prototype of smart contract management this year.
The impact of the insurance industry on the blockchain is not as fast and obvious as commercial banks, but the changes are underway.