← All blockchain use cases

Blockchain-based Policy Management in Insurance

Sector: Tertiary sector · Industry: Insurance · Organisation: Etherisc · Maturity level: Concept

Insurance policy management is often characterized by complex processes, data inconsistencies, and high administrative costs. Blockchain technology enables secure and transparent management of policy data, ensuring data integrity and automating administrative processes. This use case is still in the development phase, as concrete implementation examples could not be verified.

Documentation status

Description

Blockchain-based policy management transforms insurance administration: smart contracts replace paper-based policies and manual administrative processes.

The insurance administration apparatus is enormous: 20-30% of all premiums go towards administrative costs. Smart contract policies reduce this: the policy is stored as a smart contract on the blockchain; premium payment by crypto or traditional bank transfer triggers smart contract confirmation; in the event of a claim, the smart contract automatically checks coverage; parametric cases are paid out immediately. B3i (Blockchain Insurance Industry Initiative, 2016): Allianz, Zurich Insurance, Munich Re, Swiss Re and 11+ other insurers develop a joint blockchain infrastructure. Etherisc: open-source platform for decentralised insurance products — crop, flight and weather insurance as smart contracts.

Perspectives

B2B — organisations perspective

Insurance companies can reduce administrative costs from 20-30% to 5-10% through smart contract policies, automate premium management and enable parametric claims processing in real time.

Sources

  1. Etherisc: Generic Insurance Framework (GIF) — Open-Source-Infrastruktur für Versicherungsprodukte als Smart Contracts, parametrische Ernteversicherung Kenia via Chainlink-Orakel
  2. Forbes: Insurance Interrupted — How Blockchain Innovation is Transforming the Insurance Industry (Etherisc FlightDelay, B3i Cat XL)