Blockchain Solution Explored By Indian Insurance Companiesbr>
Thirteen Indian insurance companies have joined forces on a blockchain project to create a central repository of policy-holder data. The goal of the project is to help rein in costs for companies running medical tests and evaluations. The project also aims to ensure confidentiality and security of the data collected from individuals.
The Indian insurance companies – including HDFC Life, India First Life, and Canara HSBC OBC, among others – teamed with IBM and Cateina Technologies to create a blockchain solution. The solution is designed to help insurance companies to work on common areas of interest. It will improve business by providing customer KYC (know your customer), claims history, medical records, and agent track records, while flagging fraudulent transactions.
The group said that a whole lot of work has to be done in KYC, medical underwriting, financial underwriting, etc, when a customer buys insurance. Duplication of these procedures can be avoided by having the entire data set on blockchain.
Subrat Mohanty, senior executive vice president and head of strategy at HDFC Life, said that the technology has the potential to change the way financial services transactions are carried out. He added that blockchain would reduce inefficiencies and provide a record of information that can be accessed in a secure manner.
RM Vishakha, CEO of IndiaFirst Life Insurance, said that the insurance industry can leverage blockchain technology in a significant way to transform their processes across the insurance value chain, such as claim fraud detection and claim settlement. It will also help enhance customer experience and impact distribution efficiencies.
Jitan Chandnani, partner and blockchain leader at IBM, said the blockchain solution will decrease the operational costs on getting information in a trusted manner by keeping in line with the privacy regulations.
“On scaling up, if we can create social scorecards of medical providers, then one can actually rate them for future customer’s reference,” Chandnani said.