Blockchain Technology: A Way Ahead in Insurance Sector

Abstract

Blockchain is considered as one of the most important technology of the future. To do transaction in virtual money or digital currencies like bitcoin, gram, libra which is to be considered as the future money, would become possible as a result of the technologies like blockchain. Blockchain technology can be considered as one of the most important technology that can be implemented in insurance sector in near future. Everything that looks shining stars in the beginning that always have risk associated with it. Risk like huge expenditure on infrastructure, risk of adoption of technology by the investors/customers, risk of safety or security, risk that competitor will get first mover advantage. These are just a few examples, but lot more risk can be associated with it. Blockchain technology can either create the revolution in insurance sector or it can also be replaced just like the previous many technology. Even due to the pandemic situation dependency on technology can easily vouched. When transactions become digital then to record the same transaction is much more important. Blockchain technology is one of the most important technology that record the transaction through creating a block which encrypt the data so that it can only accessed by the authorized personal. Insurance sector in which paying the premium, putting a claim for the losses, settlement of claim etc. which required fast process, blockchain can play a vital role in this. It reduces time along with maintaining the secrecy. But as every coin have two sides, blockchain requires knowledge of the technology, investment in huge infrastructure as well as providing training to the associated parties. One should be very vigilant before applying the blockchain technology.

This research paper is an attempt to provide the future scenario of blockchain technology in insurance sector.

Keywords: Blockchain Technology, Insurance

JEL Classification: G21, G22