How to buy insurance with a blockchain solution
The market is awash with new health insurance offerings, and the technology behind them could revolutionise how we buy insurance.
But what about those of us who don’t need to?
In the UK, the government is planning to make insurance more affordable by introducing blockchain technology to all of its citizens.
With a market cap of $100bn, blockchain could be the most powerful and revolutionary technology in the world.
The system, currently known as the blockchain, is built upon a distributed database of record, which is secured by a number of cryptographic keys.
Its a highly secure and distributed system that is used by banks, financial institutions, governments and other organisations for managing their digital records.
The government is currently experimenting with the use of blockchain in order to streamline the insurance market.
The government recently rolled out a pilot scheme in the UK called the Health Benefits Information Service (HBIS) to provide health insurers with an alternative to traditional insurance brokers and insurers.
It’s hoped that by offering the insurance companies more transparency and transparency that could lead to a lower price of premiums, which would then benefit the consumer.
“The insurance industry has seen some of the fastest growing markets in the US, Europe and the Asia-Pacific region.
In the past few years, these markets have grown significantly,” said Professor Alan Kallman, from the London School of Economics.
“The healthcare industry has a huge amount of potential.
The health sector has been struggling for a long time, so we need a new model.”
Currently, the insurance industry relies heavily on a small number of brokers and brokers often charge high premiums.
“A lot of the brokers and insurance companies don’t have the technical know-how to get this sort of information from the blockchain,” said Professor Kallaman.
“So if we could just make it more secure, that would be huge.”
Currently, health insurers are relying on brokers to sell health insurance, and to process payments.
The blockchain could enable them to get their data and records in one place and the payment processing system would be able to take the information from those records and process it on their behalf.
According to the Health Insurance Information Service, it is hoped that this system will help to cut down on premiums, and therefore, increase the cost of insurance.
The first test of this idea will be launched in January, with more insurers expected to join the programme as they see the benefits.
In the meantime, the Government is looking to take on some of its own problems.
The UK is one of the few countries in the developed world where insurers have to wait up to four years for their claims to be settled.
This has meant that many insurers have been unable to access the financial records that were previously held in a centralized database, and many insurers had to go out of business before they could access their records.
According to Professor Kowalczyk, the UK is also one of those countries where it’s difficult to have insurance for everyone, because of the sheer volume of people in the country.
“You can have up to 20 million people in one country, but it takes up to 5,000 in another country,” he said.
“The UK’s population is 1.5 billion, and as the UK population grows, the amount of people that can potentially be covered with a policy is limited.”
There’s a big difference between having 20 million and 5,500, so having that insurance for everybody would be really difficult to do.
“This is where blockchain comes in.
It can allow insurers to offer insurance to people in need of it, rather than having them pay the premiums.
The system is not yet ready for use, but the UK government is working with leading tech companies to roll out a prototype of a platform to test the system.
Once the system is in place, it will be possible to verify the accuracy of the records and access the information directly from the customer.”
What we are hoping is that we can get to the point where we can validate the data, which can then be stored in the blockchain itself,” said Prof Kalleman.”
We can have that information in our own database, but without having to go to the broker.
“According to Prof Kowaldczyk the insurance company will be able sell the records directly to the insurance regulator, the Office of Fair Trading, and other stakeholders in the healthcare sector, including insurers.