Blockchain will impact the insurance industry in three ways: tapping into new markets, reducing costs, and increasing efficiency. In terms of tapping new markets, there are a number of fragmented, contextualized, and decentralized insurance emerging. Fragmented insurance requires real-time tracking and segmented underwriting. In terms of time and space, blockchain provides a guarantee for its certainty; in the future, almost any scenario can be designed for insurance, as blockchain technology insurance will become more scenario-based; in the future, insurance will be able to focus on peer-to-peer insurance, and insurers will only need to provide participants with platforms, data and other services.
In terms of cost reduction, limited time underwriting, accurate pricing, leveraging alliance blockchain, IoT and other technologies, helps insurers reduce investigation costs and potential risks. In terms of policy management, the policy is traceable, reducing the cost of repeated verification. In claims handling, automatic claims data interconnection and interoperability, smart contract execution, data reconciliation and underwriting costs are reduced. In terms of increased efficiency, the distribution negotiation process can be simplified. In the reinsurance industry, for example, where negotiations are complex, blockchain can add significant efficiencies to the negotiation and facilitation process. For pricing, underwriting once, tracking over time, avoiding repetition, and policy following the insured will become a reality due to blockchain technology. In terms of policy management, policy restrictions can be tracked in a timely manner, and insurance transactions, pledges, swaps, reinsurance, etc. can be tracked to improve efficiency and avoid inefficiencies in post-verification by tracking policy provisions.