Life Insurance and Blockchain

[Wapfika]

Picture above stated the importance of Life Insurance.
Is Life Insurance also matters to you??

We all know that some Non Life Insurance Companies already did many blockchain based products or program in the past and still creating.
(Reference on some nonlife Crypto based companies: https://builtin.com/blockchain/blockchain-insurance-companies).

But this is about Life Insurance,
I am wondering if having Life Insurance is common to everyone in your country especially at this time of pandemic and if there are already users here who have known or tried some Life Insurance companies that are offering cypto-related product or program.

In some countries, there are already news of Life and Health Insurance companies who accepts cryptocurrency or are announcing of accepting cryptocurrencies as payment, some are the known companies:

• Allianz (Reference: https://www.forbes.com/sites/benjaminpirus/2019/08/08/allianz-among-the-latest-entrants-into-token-based-payment-space-development/#5f1bcece5c5e)
• INGUARD (Reference: https://www.inguard.com/newsroom/why-inguard-was-the-first-insurance-company-to-accept-bitcoin-and-why-the-answer-might-surprise-you/)

while,

• Max Life Insurance Co. Ltd announced a startup accelerator programme which will also include Blockchain in their program.
  (https://www.livemint.com/companies/news/max-life-insurance-launches-max-life-innovation-labs-1566299969412.html , https://www.maxlifeinsurance.com/blog/life-insurance/blockchain-and-bitcoin-the-future-of-insurance)

and ,

• Metlife who already did a blockchain platform that relates to Life Insurance.
  Metlife already have a mobile app called Vitana, that utilized Ethereum to pay out claims to expectant mothers who contracted gestational diabetes.
  they are also planning to create "LifeChain" a technology based that will benefit bereaved families, MetLife’s Singapore-based incubator LumenLab is collaborating with Singapore Press Holdings (SPH) and NTUC Income (Income) on a platform of smart contracts known as ‘Lifechain’ to help loved ones quickly determine if the deceased was protected with a policy and automatically file a claim.
  (Reference: (https://www.forbes.com/sites/stevenehrlich/2019/06/19/metlife-plans-to-disrupt-2-7-trillion-life-insurance-industry-using-ethereum-blockchain/#363370cc2770))

The Key Benefits that this Companies mentioned above are the ff:

1. Fast Claim Processing
In insurance, blockchain can simplify claims processing for the nominee. Once the insurer verifies the claim, it will be recorded on blockchain to trigger the right contract execution.

2. Instant Fund Disbursement
The interaction between insurers and policyholders will become more direct during the claim process. With technology advancement backed by blockchain, insurers will be able to transfer claim proceeds directly into customers’ digital wallets.

3.Help in Fraud Detection
As, a decentralized public ledger, it provides historical data that will help insurers to detect fraudulent activities will help to validate the authenticity of claims, customers and the transactions.

4. Reduce Administrative Cost
Blockchain automated verification of policyholder identity will reduce administrative cost.

5. Ensure Transparency
The blockchain platform can generate new data streams that will provide updated and relevant information for speedier claims processing.

6. Improve Data Quality
Blockchain will improve the data quality of front-end and back-end office sources.


If they will all be successful in developing and implementing their plans, this can be a game changer in different Life Insurance companies.

Six blockchain use cases for health and life insurance companies

Moving towards interoperable, comprehensive health records
The added security and ability to establish trust between entities are two reasons why this technology can help solve the interoperability problem better than today’s existing technologies.

Supporting administrative and strategic imperatives with smart contracts
Blockchain could automatically collect records of agreements, transactions, and other valuable information sets, then link together the information and act on the data using smart contracts.

Detecting fraud more effectively
When fraudulent information is submitted to a life or health insurer via false claims, falsified applications, or other channels, smart contracts can help determine if the submission is indeed valid.

Improving provider directory accuracy
Unique provider directories could leverage the technology’s decentralized consensus protocols to allow providers and insurers to update listings more quickly and easily.

Simplifying the application process by making it more client-centric
Providing an easier-to-access, more comprehensive set of medical records on a blockchain could infuse comfort and peace of mind into what, for many, is now an intrusive and often discouraging application process.


Facilitating a dynamic insurer/client relationship
Electronic health records securely stored on a smart contract could be the foundation for integrating a wide variety of wellness-related behaviors into the insurer/client dynamic.

Source: https://www2.deloitte.com/us/en/pages/life-sciences-and-health-care/articles/blockchain-in-insurance.html

Note: I'm not part of any companies stated above,  I'm just a believer of Life Insurance importance especially this time of pandemic (just make sure you did you're research about the company you will buy your plan) and I'm also a crypto-user for quite a long time, searching whether this two can collaborate.

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1715446783

[Wapfika]

In my opinion, none of these benefit more from using a block chain than from using a traditional, or perhaps distributed, database. This is just another example of a company trying to promote itself by pumping the block chain hype.

Thank you so much for your opinion, I'm always open for opinion and comments as I also want to know others thought in Life insurance and how it can be connected in blockchain.

There is a project named Defi Insurance, while life insurance is not commonly mentioned in the DeFi community, the idea here is that from wallet insurance to smart contract insurance. There is comfort of knowing that your money and details are protected. The transparency and trustless nature of decentralized networks like in DeFi is pertaining the fit to disrupt the incumbent industry. In the end, decentralized insurance protocols will democratize the power of insurance and return to its historic roots of acting as society’s safety net.

And as a Financial Advisor in my country, I see it as a good advantage to have a decentralised platform to let those who didn't believe in Life Insurance to give it a chance, since there is no middlemen who will interfere on application to claiming the benefits, that will show transparency to everyone.

[davis196]

I have nothing against the implementation of blockchain technology and cryptocurrency payments in the Life insurance industry.
However,I highly doubt that the blockchain technology will reduce or prevent the cases of insurance fraud.
Technology can't replace humans,when it comes to investigating insurance fraud cases.
I think that the insurance industry will be damaged by the corona recession.The overall revenue of insurance companies will go down and adopting cryptocurrency payments won't make the insurance companies more attractive to the people.Many people lost their jobs due to the recession,so they can't afford insurance.It doesn't matter if they are paying with crypto coins or fiat money.

[carter34]

I have nothing against the implementation of blockchain technology and cryptocurrency payments in the Life insurance industry.
However,I highly doubt that the blockchain technology will reduce or prevent the cases of insurance fraud.
Technology can't replace humans,when it comes to investigating insurance fraud cases.

Insurance cases and prove are usually difficult and fraudulent too. ome insurance companies would look for ways not to pay and also clients too conceal certain reality.
surely blockchain can't handle this aspect of human life but as for the payment through crypto and blockchain, that is possible.

[Mauser]

I have nothing against the implementation of blockchain technology and cryptocurrency payments in the Life insurance industry.
However,I highly doubt that the blockchain technology will reduce or prevent the cases of insurance fraud.
Technology can't replace humans,when it comes to investigating insurance fraud cases.
I think that the insurance industry will be damaged by the corona recession.The overall revenue of insurance companies will go down and adopting cryptocurrency payments won't make the insurance companies more attractive to the people.Many people lost their jobs due to the recession,so they can't afford insurance.It doesn't matter if they are paying with crypto coins or fiat money.

I agree, signing up new insurances at the moment seems rather difficult. If you work in an high risk area and want to do something good for your family a life insurance seems like a good deal. But for the average worker or unemployed due to the recession. I don't see any value in such insurances. You are better off saving the money you have at the moment outright. Let's say you or a family member becomes sick and you need money - the life insurance wouldn't help out since no one died yet. Better to have the money in your own pocket and you are free to choose how to spend it.

[Nhor1011]

I have nothing against the implementation of blockchain technology and cryptocurrency payments in the Life insurance industry.
However,I highly doubt that the blockchain technology will reduce or prevent the cases of insurance fraud.
Technology can't replace humans,when it comes to investigating insurance fraud cases.
I think that the insurance industry will be damaged by the corona recession.The overall revenue of insurance companies will go down and adopting cryptocurrency payments won't make the insurance companies more attractive to the people.Many people lost their jobs due to the recession,so they can't afford insurance.It doesn't matter if they are paying with crypto coins or fiat money.

I agree, signing up new insurances at the moment seems rather difficult. If you work in an high risk area and want to do something good for your family a life insurance seems like a good deal. But for the average worker or unemployed due to the recession. I don't see any value in such insurances. You are better off saving the money you have at the moment outright. Let's say you or a family member becomes sick and you need money - the life insurance wouldn't help out since no one died yet. Better to have the money in your own pocket and you are free to choose how to spend it.

I do agree with you,sometimes insurances can't help in you immediately unless if the issue is death. That's the reality because my brother also tried to get insurance but he is disappointed because they also changed the rules after he finish his payment.

[audaciousbeing]

Op have rightly outlined the benefits of Insurance and at the same time showed the new entrants into the tokenisation of both premium and payouts from the insurance companies. I see this as a great development because it's shows that insurance companies are just moving away from their traditional role to be engaged in research and development at the same time integrating current technologies into their activities which is commendable.

I also see it as a long way down the road in the sense that insurance companies relies on the numbers and this would benefit the big insurance companies at the expense of the not so big couple with countries that their infrastructures are still behind in development to meet current trends.

[minairia3]

It will help the process but using fiat or even cryptocurrency as payment for life insurance will not change its state. Let say they used blockchain to have a convenient payment system. Then what? How does life insurance will benefit out of it? Its not like you can save discount or get a cheap life insurance if you pay for crypto. What they will improve is the system but not the value of any life insurance.

Im not against also in the implementation but surely this business will go down for a while due to people's need and rather than buying package for insurance, I will save up for food. Its like covid19 hit this business after all.

[Ucy]

I am interested in such insurance businesses. I haven't really seen or searched for any recently... Some things need to be put in place in the cryptocurrency world for me to show serious interest again.
I'd prefer insurance companies that  are well decentralized and non-custodial. I should be able to control my funds/private-keys and not the insurance companies. Perhaps, my fund should be locked in company's decentralized smart contract that can only be released to me, (not to the company or any unauthorized persons) when agreements contained in the contract are fulfilled after decentralized automated/manual verifications.

[Coin_trader]

I am interested in such insurance businesses. I haven't really seen or searched for any recently... Some things need to be put in place in the cryptocurrency world for me to show serious interest again.
I'd prefer insurance companies that  are well decentralized and non-custodial. I should be able to control my funds/private-keys and not the insurance companies. Perhaps, my fund should be locked in company's decentralized smart contract that can only be released to me, (not to the company or any unauthorized persons) when agreements contained in the contract are fulfilled after decentralized automated/manual verifications.

Finally, A very good input about implementation of blockchain to insurance industry. Actually this is what I'm thinking too. I have life insurance and VUL(Valuable Unit Link) since I have a job after I graduated in college and got my degree. I still not comfortable about my insurance because there is a risk that insurance company will faced bankruptcy in the future and obviously my insurance will be gone.

Implementing smart contract and blockchain will give us freedom about potential risk that I mention above and at the same. It will be more convinient for me to pay my monthly premium using cryptocurrency because it will give me saving on convertion fee from crypto to fiat. DeFi project are really a game changer in crypto space.

[Ucy]

I am interested in such insurance businesses. I haven't really seen or searched for any recently... Some things need to be put in place in the cryptocurrency world for me to show serious interest again.
I'd prefer insurance companies that  are well decentralized and non-custodial. I should be able to control my funds/private-keys and not the insurance companies. Perhaps, my fund should be locked in company's decentralized smart contract that can only be released to me, (not to the company or any unauthorized persons) when agreements contained in the contract are fulfilled after decentralized automated/manual verifications.

In this case, future policy or rule changes by a decentralized company should not affect customers fund without their consent... Stakeholders, customers, participants should consent to the new rules or policies. If they are not available for certain period of time to consent after getting notified, then their funds may be temporarily stopped from the scheme but with all benefits already accrued to them paid.    This is atleast more tolerable than having your funds siezed by centralized platforms for not meeting certain new requirements

[Wapfika]

I have nothing against the implementation of blockchain technology and cryptocurrency payments in the Life insurance industry.
However,I highly doubt that the blockchain technology will reduce or prevent the cases of insurance fraud.
Technology can't replace humans,when it comes to investigating insurance fraud cases.
I think that the insurance industry will be damaged by the corona recession.The overall revenue of insurance companies will go down and adopting cryptocurrency payments won't make the insurance companies more attractive to the people.Many people lost their jobs due to the recession,so they can't afford insurance.It doesn't matter if they are paying with crypto coins or fiat money.

Sometimes the reason why people didn't want to have insurance is because of the humans who are assigned in claiming, some beneficiaries didn't get the claim since the investigator might oversee. However, if the blockchain will be implemented and it will be put in a contracts along the details from the government, the police reports, hospital details, accidents issue will be indicated there and will be validated by both parties.
In case in my country the Insurance penetration rate in the country due to covid is relatively low because only few yet have policies and mostly who are infected didn't have insurance to claim,but I agree recession will affect the insurance companies in terms that some insured were not be able to pay so lucky those who finish paying their total insurance plans before this Pandemic.

[Kelvinid]

People don't really want life insurance, a sad reality. And this is likely to see that Life Insurance companies integration to blockchain and accept crypto for payment is less possible with that case.

A lot of reason why people don't push themselves and get interested in life insurance,

*delays( mostly it takes months to process depending on the situation)
*many don't care about their future but to rely what they have now
*Some companies don't give what they have promised that it affects people to think that they are all the same.
*negative feedback

[Natalim]

I am hoping to avail this kind of insurance in the future, it's my first time to know it as I wasn't really looking for an insurance now.
But, for transparency sake, I think insurance using the blockchain provide that to us, and if it's easy to claim and to avail it, this should grow and gain massive adoption in the future, it looks like the world is about to change already, from centralized to now decentralized.

[shoreno]

I am hoping to avail this kind of insurance in the future, it's my first time to know it as I wasn't really looking for an insurance now.
But, for transparency sake, I think insurance using the blockchain provide that to us, and if it's easy to claim and to avail it, this should grow and gain massive adoption in the future, it looks like the world is about to change already, from centralized to now decentralized.

if you didnt see this post , you wont know the benefits of insurances right ? but now that you know ,  why make such excuse ?  . we wont know if how long we will live in this world so its better that we started a plan like this as early as possible . in that way our funds already grewed alot and we dont need to worry for ourselves or to the people that we will be leaving  . also we cant say that world is changing from centralized to decentralized just because of this but its too early for those  .  majority of businesses like this are still operating on a classic technology

[Wapfika]

I am hoping to avail this kind of insurance in the future, it's my first time to know it as I wasn't really looking for an insurance now.
But, for transparency sake, I think insurance using the blockchain provide that to us, and if it's easy to claim and to avail it, this should grow and gain massive adoption in the future, it looks like the world is about to change already, from centralized to now decentralized.

if you didnt see this post , you wont know the benefits of insurances right ? but now that you know ,  why make such excuse ?  . we wont know if how long we will live in this world so its better that we started a plan like this as early as possible . in that way our funds already grewed alot and we dont need to worry for ourselves or to the people that we will be leaving  . also we cant say that world is changing from centralized to decentralized just because of this but its too early for those  .  majority of businesses like this are still operating on a classic technology

Yes, having life insurance if we still have means to pay it now should be a priority especially this time of Covid, if you still have job and thinks it will not be part of recession as well you have families that depends on you, then Life Insurance is a must. The investment portion in some VUL plans are just bonus that will help us to invest in future plans we wanted thru compound interest. The main reason is Having health and life insurance now at these Pandemic can help us if ever we got infected which we hope not but it's better to have it policies, than look for it when we can't no longer be accepted.

The development in insurance getting into decentralised platform will take time and will only be possible if the people in a country is aiming to have it.

[mu_enrico]

AFAIK, life insurance isn't a form of investment but a hedge because users cannot get rich from joining some insurance products. Anyways, I'm not a fan of mixing (1) protection with (2) investment or called unit-linked insurance plan. Usually, insurance companies delegate the investment fund into fund managers. This scenario often leads to inefficiency (too many fees) and mismanagement. Insurance companies should be specialized in protection or insurance policy (only).

About crypto usage in this topic, I have no comment since I'm skeptical about the "blockchain and not bitcoin" things.

[erikoy]

AFAIK, life insurance isn't a form of investment but a hedge because users cannot get rich from joining some insurance products. Anyways, I'm not a fan of mixing (1) protection with (2) investment or called unit-linked insurance plan. Usually, insurance companies delegate the investment fund into fund managers. This scenario often leads to inefficiency (too many fees) and mismanagement. Insurance companies should be specialized in protection or insurance policy (only).

About crypto usage in this topic, I have no comment since I'm skeptical about the "blockchain and not bitcoin" things.

Well others think that insurance is an investment where one can keep their money in them and over time one can be paid with interest and has the benefits also when one joins like the health benefit expenses if a member will get hospitalized and more.

It is true that this is not an investment but some of those hose who invite always says that this is an investment and the gains/profit will be in the future. This is how really difficult to understan an insurance/investment.

[mu_enrico]

Well others think that insurance is an investment where one can keep their money in them and over time one can be paid with interest and has the benefits also when one joins like the health benefit expenses if a member will get hospitalized and more.

It is true that this is not an investment but some of those hose who invite always says that this is an investment and the gains/profit will be in the future. This is how really difficult to understan an insurance/investment.

Dude, insurance doesn't have "interests." You pay a premium to get some type of protection (it can be life, health, property, etc.). That's it.

The problem with unit-linked insurance products is, you are also paying for the fund managers' fees while it isn't scientifically proven that they can beat/time the market.

For example, unit-linked life insurance costs $4,500/year: the premium costs $3,000/year, and the investment plan costs $1,500/year with (x% management fees + x% buy/sell charge). Why don't you put $1,500/year into something else that costs you nothing? e.g., Bitcoin, or self-managed stocks. Some exchanges still give you 0% trading fees if you do limit order.

[bearexin]

I see a lot of companies that are doing as much as possible to use the Blockchain and improve in a lot of ways. But as the second comment have pointed out, there is really nothing interesting in all these things that they mention.

If they are going to talk about making payments, I don’t know for other countries, but Bitcoin wouldn’t be the fastest option, and other cryptocurrencies wouldn’t be as fast as well since you’re still going to have to move that money to your bank account, so why don’t they just send that money to the bank then, than letting you pay extra fees for confirmation while selling your cryptocurrency to get it in your bank? I don’t know for other people, but I don’t look much into these things, they don’t bother me much.