The future of financial infrastructure
An ambitious look at how blockchain can reshape financial services from World Economic Forum and Deloitte
1. Future-state process description Loss information is submitted by the insuree or smart asset (via sensors or external data sources if the asset is technologically capable), triggering an automated claim application
2. For insurance policies issued via a smart contract, insurees receive feedback regarding initial coverage in real time
3. Claim due diligence is automated via codified business rules within the smart contract, using information submitted by the insure
4. Blockchain automatically utilizes secondary data sources to assess the claim and calculate the loss amount
5. Depending on the insurance policy, a smart contract can automate the liability calculation for each carrier where a syndicate (or insurers or reinsurers) exists
6. In predetermined situations, the smart contract can trigger an additional assessment of the claim in order to reach a final decision/calculation
7. If the claim is approved, payment to the insuree is initiated via a smart contract
Future benefits:
- Simplified and/or automated claim submission: through a smart contract, the claim submission process will be simplified and/or fully automated (in cases of smart assets)
- Enhanced customer experience: through the streamlined transfer of loss information from insuree to insurer, DLT eliminates the need for brokers and reduces claim processing times
- Automated claim processing: business rules encoded in a smart contract eliminate the need for loss adjustors to review every claim (functionality will enable the loss adjuster to review the claim and provide a decision, in specific risk situations)
- Reduction in fraudulent claims: the insurer will seamlessly have access to historical claims and asset provenance, enabling better identification of suspicious behavior
- Integrated data sources: Blockchain facilitates the integration of various data sources from trusted providers with minimal required manual review
- Streamlined payment process: in most cases, the smart contract will facilitate the payment automatically without effort from the back office.
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