Page 32 - Insurance Times September 2023

blockchain that operate when predetermined such as weather events or health data. It also facilitates
conditions are met. They typically are used to automate the tokenization of insurance policies, allowing
the execution of an agreement so that all participants policyholders to trade and sell their policies in a
can be immediately certain of the outcome, without transparent and secure secondary market.
any intermediary's involvement or time loss. This
automation reduces the need for manual intervention, Conclusion
minimizing paperwork, administrative costs, and
Blockchain provides a transparent and verifiable record of
processing time. Claims processing, policy renewals, and
underwriting can be expedited, leading to faster and transactions, policies and claims. All participants in the
more efficient service for policyholders. network have access to the same information, creating a
common source of truth. This transparency increases trust
4. Fraud Prevention: With its transparent and tamper-
by allowing insurers, policyholders and other stakeholders
resistant nature,
to independently verify the accuracy and validity of
blockchain technol-
ogy can help detect transactions and policies.
and prevent fraudu-
To see more implementation of blockchain, all stakeholders
lent activities in the
life insurance indus- in the insurance space need to harmonize standards,
try. By recording processes, regulatory and legal frameworks to implement
policy information, blockchain. That includes (re) insurers, brokers, regulators,
claims, and transac- and everybody given the connectivity of the blockchain
tions on a blockchain, framework. Although blockchain can improve the industry
it becomes challenging to manipulate or forge records. in terms of accuracy, efficiency, privacy, and more, it is
crucial to understand that every insurance company that
This can deter fraudulent claims, reduce financial losses
uses blockchain must adhere to ethical standards.
for insurers, and lower premiums for policyholders.
5. Data Privacy and Consent Management: Life About the Author:
insurance involves the exchange of sensitive personal
Neeraj Kaushik, Principal Consultant, is a Product Man-
and medical information. Blockchain can address data
ager for the Infosys® McCamish NGIN platform initia-
privacy concerns by giving individuals greater control
tive at Infosys McCamish Systems in Atlanta (GA), US.
over their data. Policyholders can grant specific access
permissions to insurers, healthcare providers, or other Neeraj is an innovative and effective leader recognized
authorized entities, ensuring their data is only shared for achieving exceptional results in highly competitive
with consent. This empowers individuals to manage environments requiring continuous improvement and
their privacy preferences and comply with data has driven the business of large-scale technology
protection regulations. projects based out of the US, UK, India, and China Ge-
ography for the last 18+ years. He has an excellent
6. Efficient Claims Settlements: Blockchain's automation
business domain, architecture, design, and implemen-
capabilities can significantly improve the claims
tation skills in various life insurance administration
settlement process in life insurance. Smart contracts can
as well as producer management & compensation
be implemented to trigger claim payments
systems.
automatically when predefined conditions are met,
such as the occurrence of a specific event or milestone. Prior to this, Neeraj was part of Big 4 Consulting firms
This eliminates the need for manual claims processing, where he led digital transformation programs for the
reducing delays and human errors, and ensuring Insurance Industry. He has led strategic consulting and
faster and more accurate claim settlements for transformation initiatives across the Life, Annuities, and
policyholders. Property & Casualty Insurance space.
7. Market Innovation: Blockchain technology opens He holds a master's degree in insurance & risk manage-
opportunities for market innovation in life insurance. For ment and the designations of ALMI (LOMA) and Fellow
example, it enables the creation of new insurance (III India) and is a published author in major media and
products and services based on parametric triggers, business outlets.

28 September 2023 The Insurance Times