Insurance + Blockchain Part 4

New breakthrough for Internet insurance with Blockchain

Blockchain distributed database has achieved cross-regional information and value exchange by full network consensus mechanism, blurring the geographical boundaries, from regional even to global, then strengthen the interaction relationship between different individuals and areas, especially to break the obstacles from information asymmetry in the development of insurance business. Meanwhile, “timestamp” in Blockchain owns the full transaction and transfer process recording, and the record can not be modified or tampered with. Thus expanding the scope of time, relative to shorten the time period, make the original insurance period into segmentation become possible, and develop a more flexible insurance products.

New situation for Internet insurance with Blockchain

Blockchain, especially for smart contract, the insurance contract can execute automatically, greatly improve the trading interaction of insurance. Meanwhile, with the wide application of big data technology, it has greatly enriched the data dimension and quantity, effectively dilute the quality of data, then realize the function of self-authentication. This combination about “self-execution + self-authentication” make “self-finance” become possible, and provide a “point-topoint” micro insurance solution for people. There is no need to rely on the insurance broker or intermediary, market participants can create their own risk pool system based on blockchain technology in a more direct and active way.

New changes for insurance regulatory with Blockchain

The market economy theory said a effective market should be able to realize “free market” and “effective supervision”. From the overall trend, supervision will realize the transformation from “system” to “technology”, and Blockchain provides the possibility for technical supervision. The interactive consensus trust system for multi-party verification can explore the establishment of  the self-supervision platform, the core idea is based on Blockchain, so that each client node can participate in examing and verifying any insurance business, realize the point-to-point management system with check and balance mechanism, to ensure that the system can not be cheated by any computer in it.

Through the whole network supervision, using the characteristics of immutability and traceability, it can ensure the reality and legitimacy of the insurance, strengthen the information asymmetry and transaction security, then effectively reduce the cost of supercision, improve the effectiveness of supervision. With the development of Blockchain, insurance supervision will achieve the three changes, from system supervision to technical supervision, from government supervision to self-industry supervision, from company compliance to social supervision. Anyway, the application of Blockchain in insurance will have extensive prospect in future.