Topic: Life Insurance and Blockchain - page 7. (Read 1093 times)

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.


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.