BitClave

Introducing Blockchain-Based Efficiency into the Homeowners Insurance Industry

The home owners insurance industry needs a tune up, and cost-saving blockchain technology is just the ticket.
Blockchain technology. Many of us have heard of it, but what does it have to do with the insurance industry?

Simply put, blockchain has huge potential to reduce wastefulness in the homeowners insurance industry in areas such as advertising, issuing quotes and verifying and fulfilling claims. In this article, we're going to go over how blockchain technology powered by the BitClave Active Search Ecosystem (BASE) can save your business some serious time (and money).
Eliminating Redundancies, Saving Time and Money
Whether your first contact with a new homeowner is direct (they request a quote from you) or indirect (for instance, they view advertising for your business), wouldn't it be helpful to know more about the potential customer? As a search platform, BASE can add veracity to the interaction from the first exchange of data.

There are many parties involved in the sale of a home, and additional safeguards when the new homeowner shops for home insurance. Often, insurance agents and different actors can wastefully verify the same piece of information — like the year a home was built — many times over. This kind of paper-pushing can go the same way as traditional advertising and be replaced with blockchain-based information sharing.

While veracity is clearly important and saves costs of adjustments down the road, blockchain verification can replace some of these redundant processes. When data or access to data is controlled on a decentralized network like BASE, important pieces of information are locked in so that any change requires buy-in from all the parties.

In insurance, this means that characteristics of a home, for example, or elements of the buyer's profile, can be shared separately. That direct interaction occurs within the BitClave ecosystem when the insurance process requires it.
The Bottom Line
Secure, agreed-upon and verifiable information can cut costs both at the point of purchase, when a homeowner makes a decision about an insurance provider, and when filing a claim. In fact, in 2016 63.8% of the premiums earned by the homeowners insurance industry went to settling claims, adjusting claims, cost containment and other expenses. Some of these costs, like negotiating adjustments, could be reduced. The bulk of other costs like operating expenses could be streamlined as well. For example, this could be achieved through a blockchain-based premium collection system, and by greatly reducing advertising costs.

Interested in incorporating blockchain into your insurance business through BASE? Sign up to receive updates here.