Transforming the Insurance Industry with Blockchain and Smart Contracts: Enhancing Efficiency, Transparency, and Trust
Abstract
Oliver Bodemer
This scientific overview explores the application of blockchain technology and smart contracts in the insurance industry. It discusses their impact on various aspects such as claims management, underwriting, policy management, fraud prevention, and emerging trends. The benefits of automation, transparency, and efficiency in claims management are highlighted, along with examples of successful implementation. The potential of blockchain in enhancing underwriting processes and risk assessment through access to trusted data is explained. The advantages of transparent and auditable policy records, policy issuance, and enforcement through smart contracts are discussed. The role of blockchain in combating insurance fraud and its potential to improve trust and transparency are examined. The challenges of scalability, regulation, interoperability, and privacy are addressed, along with strategies for successful adoption. Lastly, the emerging trends of tokenization, parametric insurance, and peer-to-peer insurance are explored, envisioning a transformed insurance landscape driven by blockchain and smart contracts.