Blockchain application in the insurance industry

To answer this question it is better to introduce the core technology introduction of blockchain and the current problems in the insurance industry.

Introduction of the core technology of blockchain

The blockchain mainly solves the problem of trust and security of the transaction, so it puts forward four technological innovations for this problem:

The first one is called distributed ledger, which is that the transaction bookkeeping is completed by multiple nodes ****same as those located in different places, and each node records the complete account, so they all can participate in monitoring the legitimacy of the transaction, but also can **** the same testimony for it. Unlike the traditional centralized bookkeeping scheme, no single node can record the accounts alone, thus avoiding the possibility of a single bookkeeper being controlled or bribed to keep false accounts. On the other hand, since there are enough bookkeeping nodes, theoretically the accounts will not be lost unless all the nodes are destroyed, thus ensuring the security of the account data.

The second is called symmetric encryption and authorization technology, where transaction information stored on the blockchain is public, but account identity information is highly encrypted and can only be accessed with the authorization of the data owner, thus ensuring the security of the data and personal privacy.

The third is called the ****recognition mechanism, which is how to reach ****recognition between all the bookkeeping nodes to identify the validity of a record, which is both a means of identification and a means of preventing tampering. Blockchain proposes four different **** knowledge mechanisms for different application scenarios, striking a balance between efficiency and security. In the case of Bitcoin, for example, proof-of-work is used, which makes it possible to forge a non-existent record only if it controls more than 51% of the bookkeeping nodes in the entire network. This is essentially impossible when enough nodes are added to the blockchain, thus eliminating the possibility of forgery.

The fourth technical feature is called smart contracts, which are based on these trusted and untamperable data and can automate the execution of some pre-defined rules and terms. Taking insurance as an example, if everyone's information (including medical information and risk occurrence information) is real and trustworthy, it is easy to automate claims processing in some standardized insurance products.

Policyholder risk management

In today's insurance business, disputes between insurers and policyholders occur from time to time, either because the policyholder provides false personal information to cheat the insurance company, or because there is a disagreement about the exclusion clause when settling a claim. The key to these problems lies in the lack of a reliable means of collecting and storing personal information.

With the advancement of national systematic projects such as the digitization of medical information and the personal credit system, more and more authoritative data sources are emerging, and if these data can be introduced and stored on the blockchain, they will become the digital identities of everyone, which are real and trustworthy, tamper-proof, synchronized in real time, and lifelong validity, and will be of great benefit for the risk management of the insureds.

The first is that the data on it is authentic and trustworthy, and synchronized in real time.

The first is to connect the data between different companies and cross-reference them, so as to timely discover information such as duplicate insurance, historical claims, etc., and timely identify high-risk users.

The second is to introduce data from different industries into the blockchain, which can improve the accuracy and efficiency of underwriting and claims. To cite an example of critical illness insurance, if all the medical records of the policyholder, even those of immediate family members, can be queried on the blockchain, there will be first-hand information about the policyholder's current physical condition, history of illness, and family history of illness, which can effectively eliminate the need to take out insurance with illness.

For example, the first domestic network mutual aid platform concentric mutual aid using blockchain technology as the core, on the basis of the traditional mutual aid platform, with the help of blockchain technology, to realize the decentralized information *** enjoyment, innovation to achieve the full transparency of the operation, for the public to build a fair, just, open, safe and efficient open mutual aid information service platform.

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