The latest blockchain info reveals that the technology is ready to get adopted in the Indian insurance sector. It is known that several MNC’s have already undertaken this new technology for efficient operational procedures. It was earlier restricted to cryptocurrency domain but it has stepped out to various other domains like education, finance, infrastructure, real estate, banking and many more.
According to Mondaq, it is stated that blockchain info is very efficient in handling huge data and is considered secure as compared to the existing system. Integration of the encryption based technology into the insurance company’s database is likely to extend a helping hand in data integrity and management.
The insurance industry is largely based on the trust of policyholders and the accountability of the insurance firm. The unpleasant incidents which compromise the security of proprietary data of policyholders result in the low confidence as well as regulatory consequences. Blockchain there plays a major role in securing the trust of the client as it is considered as theft proof and better than the current operational systems used in insurance companies. This technology can be undertaken for the purposes such as record bookkeeping and avoiding fraudulent activities prevalent in the market through manipulation of data.
Indian Insurance Sector & Blockchain
It is alleged that some Indian insurance firms have already begun contemplating blockchain info that can be used and implemented. Another update, reveals that a consortium of the 15 leading Indian insurance companies has collaborated with a global technology firm in order to develop a blockchain facility. This will be able to facilitate cross-company data sharing in specific cases which will reduce money-laundering and fraud to a large extent.
It is too early to state how successful this integration is going to be for the insurance domain. Perhaps, this will be clear after some time when there are practical cases available in the market for study.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy the website. ]