The insurance business is no stranger to digital transformation. Tech-enabled innovations such as artificial intelligence, Internet of things, and machine learning are revolutionizing how businesses operate in this connected world. Blockchain, in particular, may present long-term benefits and opportunities to insurance customers because of its protective standards. This decentralized database technology allows transactions to be managed from multiple platforms, thus improving security, reducing costs, and increasing efficiency and transparency.
At Doeren Mayhew Insurance Group, we understand the complexities of the insurance landscape. We are in business to offer customized asset protection that delivers long-term peace of mind for our customers. While insurance has historically been considered a low-tech space, the need for enhanced risk mitigation has yielded a notable interest in leveraging technology to improve customer experiences. Here, we discuss four ways Blockchain technology can increase customer satisfaction by helping to create more trust between carriers and insureds.
Improving Security
Blockchain technology can aid in risk prevention and provide an enhanced level of security for insurance customers. A shared ledger allows for collaboration between insurers to securely maintain and share confidential records. Additionally, blockchain’s use of advanced cryptographic competencies is particularly advantageous in verifying the authenticity of customers, policies, and transactions, while also preventing security breaches that ultimately save money on premiums.
Reducing Costs
Given that blockchain improves data sharing capabilities, it also reduces costs that are typically associated with slow operations, high error rates, and heightened cyber vulnerabilities. By automating processes, insurers and their customers benefit from the cost savings that come with faster claim processing and reduced premiums.
Increasing Efficiency
Insurance policy management and transactions tend to be manual, which takes a lot of time. Blockchain technology streamlines the steps required to securely execute contracts, maintain records, process payments, and authenticate identification. This new level of efficiency enhances the customer experience, while improving standard operating procedures across the insurance industry.
Increasing Transparency
Cryptography in blockchain improves customer privacy through the use of encoded data that remains secure and authenticated. Blockchain’s database technology promotes new levels of transparency and accountability on the part of insurance companies. Customers can feel good about the tamper-proof audit trail that blockchain creates, which leaves no room for data deletions and changes.
Blockchain’s emerging technologies have proven to have key benefits for insurance customers by improving security, reducing costs, and increasing efficiency and transparency. At Doeren Mayhew Insurance Group, we specialize in guiding individuals and businesses through insurance decisions in order to minimize risk. Contact one of our dedicated insurance agents to schedule an in-depth consultation to learn how we can help you achieve your coverage goals.