The begin of the insurance sector was to ensure the goods transported due to the excessive presence of pirates.
The Problem
According to an FBI study the annual cost of insurance fraud is approximately $40 billion. These insurance fraud cost the average increase to an American family approximately $500 in insurance premiums. However, the biggest losses are borne by the companies, the management of IT security and operational losses resulting from attacks involve huge investment costs.
Three Lines of Defense model
For these reason insurance companies are starting to manage cyber risk with a Three Lines of Defense model.
- IT and the CISO: make up the first line of defence, implementing and executing the information security strategy.
- The CRO makes up the second line of defense, along with compliance, which assesses the adequacy of internal solutions and their alignment with regulatory requirements.
- Internal Audit, providing an independent assessment of the adequacy of the cyber risk management framework and whether the processes and controls are being applied effectively.
The Solution
Blockchain in its public implementations solves the fundamental problem of creating a trust-less and permission-less network, where the participants can consider valid a transaction, and therefore also a possible related certification, thanks to the consent mechanism generated by the system of incentives and disincentives among the parties involved.
The non-falsifiable certification of documents is one of the most important applications of Blockchain technology, as a certified document in the Blockchain can NEVER be falsified.
The non-falsifiable certification of documents is one of the most important applications of Blockchain technology, as a certified document in the Blockchain can NEVER be falsified.
The Knox Project
The KNOX project provides for the establishment of the first insurance company that will merge the real world with the digital one using Blockchain technology, creating the most efficient and advanced structure in the sector, to find a solution to the problem of certification and anti-forgery of insurance policies.
The goal of KNOX is to reach, by exploiting the blockchain, a decentralization of the whole insurance system. Decentralization means the transformation of traditional insurance policies from paper into smart contracts.
Importance of Smart Contract
- With the smart contract the spread of false insurance policies is avoided because it is the same system that issues them after receiving the payment.
- With the smart contract the company won't have delay in collecting credits, as the policy is issued only after receiving the payment. This factor aims to significantly improve the management of the company itself.
- With the smart contract in the event of accidents the real judge who will decide whether or not to pay them is no longer the company, which could have an opportunistic behavior, but the block-chain system will decide if this accident is compliant with the provisions in the policy. This benefit will be the most important as it will increase the transparency of the company towards customers.
Inscoin Platform Main Functions
Creation of customized profiles for Brokers, with their personal inscoin wallet.
- Possibility for the Broker to create for all his clients their underlying profiles, combined with his identification code and related wallet inscoin.
- Possibility for each private customer to create their own profile, with relative inscoin wallet. Direct loading of all the policy features for an evaluation and a quote.
- Possibility of paying the policy as described in the previous paragraph. Reception, in case of purchase of the policy, of the address of the smart-contract with which you can verify the authenticity.
Finally
As you can understand the introduction of the smart contract is an important step towards a fair relationship between the company and the customer. A relationship that favors the maximum transparency and that will allow the same company to have a reputation of behavioral seriousness never seen before, which is very important since in the insurance sector the NAME and the REPUTATION are the main factors.
✅Website: https://inscoin.co/
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✅Bitcointalk ANN: https://bitcointalk.org/index.php?topic=4422850
Author of article:
✅Bitcointalk username: Erik_Smuel
✅Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=2020517
✅Bitcointalk username: Erik_Smuel
✅Bitcointalk profile link: https://bitcointalk.org/index.php?action=profile;u=2020517
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