The Use Case
The Association of British Insurer's (ABI) estimate that insurance companies spend upwards of £2000m per year investigating insurance fraud.
Blockchain technology has the potential to create an immutable history of both assets and people which could aid insurers in spotting insurance fraud. A smart contract could be used to verify an event, after which payment would be made. This smart contract could use the loT to enchange the offering e.g. geo location data.
How It Could Work
Bad Claims Insurange Ltd spend over €5 million per year investigating fraud. Their current paper based system means they have no single view of their customers insurance history, and so treat each claim as if it may be fraudulent.
A digital history of assets would identify customers with a bad insurance history. There is the potential to open up this shared, immutable data store to the whole industry, which would mean a clear view of all customers, even those transferring from a different insurer.