Impact of Blockchain in Car Insurance

Automobile industries mostly deal with auto insurance as well as have deals with service centers. Even with the coordination, customers often have to fill in multiple forms for insurance claims and have to wait for a long time to get the status of the claim such as whether it’s been accepted or rejected. Solution

Consider the following scenario:

 1. Imagine a buyer Reeta visits an automobile dealer to purchase her new car. She selects her dream model, and the dealer offers her an amazing deal on the new model. Also, as part of the purchase process, she’s offered an insurance contract, which she agrees to and signs up for, so she provides her personal data along with a start date and end date for the contract. When all the paperwork is complete, Reeta is given the web site details to a decentralized application with credentials so she can log in at any time if she needs to file a claim. At this point, the contract is written to a block on the block chain to maintain the transaction.

2. However, in a few months’ time, as luck would have it, the car is stolen when she is on a road trip to a nearby town. She reports the incident to the police station nearby and visits the provided web site, logs in, describes the theft and files her claim with the insurance company. The claim is first processed by the police, who can either confirm or deny the theft. Let’s say in this case, the theft is confirmed, and the police attach a file with a reference number that is written to the IPFS.

3. Once the insurance company monitors all active claims on the block chain approved by the police station, it submits a reimbursement for the claim. Just as with the previous transactions, the reimbursement is written to the block chain. The reimbursement can be in terms of money, or it might be tied to a list of repair shops if it was damage instead of a theft.

4. Reeta is a happy customer as she did not have to go through the painful procedure of filling out multiple physical forms or e-forms with all the same data she already provided. Note that insurance companies have the option to activate or deactivate certain contracts. This doesn’t mean contracts that have already been signed by customers will no longer be valid; it simply doesn’t allow new signings for these types of contracts. In addition, the insurance company can create new contract templates with different terms and conditions or a different pricing structure.

 The app will have four participants, or peers.

? Automobile dealer

? Insurance company

 ? Police station

 ? Repair shop

The automobile dealer peer sells the products to a consumer. The insurance peer is the company that provides the insurance for the product (in this example, the car) and that is responsible for processing the claims. The police peer is responsible for verifying the accident or theft claims. The repair shop peer is responsible for repairing the product.

 Ethereum Advantages

 Insurance claims and realization often involve verification and data exchange between multiple parties. Hence, the block chain offers a huge opportunity here with the chance to innovate around the way data is exchanged, claims are processed, and fraud is prevented. The block chain can bring together developers from tech companies, regulators, and insurance companies to create a valuable new insurance management asset.

These are the benefits to customers:

 ? Superior control

? Reduction on intermediary and trustless exchange

? Transparency and immutability

 ? Reduction of cost

These are the benefits to the insurer:

? Better efficiency

 ? Enhanced quality of service delivery while improving confidentiality and integrity of data

 ? Reduction in fraud

Ethereum-based Dapps used in the insurance domain:

? Etherisc has built many insurance products such as flight delay insurance, hurricane protection, crop insurance, collateral protection for crypto-backed loans, and more on the Ethereum network.

? Dynamis is an Ethereum-based distributed application for P2P insurance