Summary

In today’s world, technology is at the heart of every aspect of professional as well as personal life.
One of the miracles is the blockchain, and the report by WEF in 2016 on upcoming technology
trends have regarded the blockchain as a “beating heart” of the financial system across globally.
According to the report, it predicted that by 2027, the blockchain technology will have impact of
10% of total global Gross Domestic Product.

A blockchain technology is a distributed ledger and shared across the systems with undeniable
transactions that can work without trust in cluster of networks. In 2016 alone, major companies
around the world have hugely invested in blockchain technology, which exceeded over $1.4
billion, mainly through investing in upcoming projects in the finance sector, supply chain sectors
and healthcare. Also insurance companies have put a lot of effort to explore the potential of
blockchains through technology startups, huge investment has been put in ‘Teambrella’ a start-up,
a well-developed business (Peer-to-Peer) model that allows individual to provide insurance for
themselves, without any need of intermediaries.

To study the potential role of blockchain in insurance, this research helps in exploring how this
technology helps life insurers in simplifying the processing of death claims, a procedure which
requires victimized stakeholders to experience time-consuming activities to process basic claims.
Our study of blockchain-based solutions can incorporate current death registration and death
claims processes into a simplified procedure and single system, so that it requires minimal
intervention from multiple stakeholders. In addition to focusing on claims processing, the research
also evaluates - through some present practices which is used in industry – how life insurance
companies can creatively use blockchain technology to automate reinsurance claims.

Blockchain and its shared, distributed ledger technology have a potential to transform business
models and business process, and it could give organizations with a significant advantage over
other firms.
 OVERVIEW of BLOCKCHAIN TECHNOLOGY

Above figure determines that how the blockchain model works. By applying, public key and
private key encryption and authorized protocols, all nodes of the system, i.e. computers/users
participating in the network can authorize complete ledgers and transactions without any assistance
for trusted (usually central system) permissions.
BLOCKCHAIN IN INSURANCE
Typically, when an individual starts a transaction on a blockchain, the nodes in the connected
system can validate, evaluate, and agree to the proposed transaction, thereby including it in the
"chain" and other transactions in the form of "blocks." Another advantage of the blockchain
enabled network is the dedicated blockchain, which only allows known nodes to participate in the
network.

In addition, the blockchain is seen as a transformative catalyst in the insurance sectors, such as:
• Travel Insurance: by making it a single ecosystem with departments and travel agencies
to automate the claim settlements.
• Crop insurance: Collaboration with climate experts to automate the process of insurance
claims for fraud claims.
• Property and Accident Reduction of damage claims to less than 48 hours by using a block
chain that covers insurance companies, garages and policies. (For more information on
Blockchain in the PyC industry, see "The Blockchain Imperative: The Next Challenge for PyC
Insurers.")
• Health insurance: if a chain of blocks linking hospitals, doctors, laboratories and
insurance providers could provide a continuous flow of data on the insurers health to improve the
collection and validation of claims.
Some of the most important life insurance companies have already taken steps to experiment
with blockchain-based solutions along the entire process. For example, John Hancock is
evaluating a employee reward proof-of-concept. In addition, MetLife has joined the blockchain
R3 consortium to understand how distributed accounting books can streamline activities such as
business processes and management, policies, customer payments, new investment management,
and sales Products .

BLOCKING: SIMPLIFICATION OF DEATH APPLICATION & CLAIM FORM

The process of capital punishment has not changed significantly for decades, despite many technical
interventions & automations. For many insurers, this is still an inefficient manual process that is
subject to fraud, leading to buried analysts with experience in paperwork. As the customer-centric
approach is fundamental to most insurers, it’s expected that the claims process will evolve to ensure
a minimum of inconvenience to the beneficiaries. Improve beneficiaries' experience in most
organizations by minimizing the number of manual contacts, reducing fraud, & better scheduling the
application deadline.

New technologies are forcing insurers to re-evaluate their tools & practices in central & secondary
offices in the future
 Paper based processing
• Manual control & data entry.
• Missing structured process flow: The elements of the case file arrive at different times.
• Information in different systems.
• Maintain complex documents.
• Large manual effort for the payment of claims.  Automated processing
• The engines are based on the claims evaluation rules.
• Reduction of manual input.
• Electronic documentation systems.
• Reduce employee effort in claim processing.
The treatment was aimed at the beneficiary.
• Place the beneficiary in the middle of the entire process as follows: »Improving the experience
of the beneficiary.
»Improvement of payment on time.
»Minimize contact points.
»Better fraud detection.
 Current death registration process
The process of registering deaths is similar in all regions, with some specific deviations from the
l&. The process is developed as follows:

• A cause of death & cause of death confirmed by the last attending physician is required. A
forensic statement is required if death is not natural.
• The aforementioned medical certificate is sent to the associated government office that
issues the death certificate.
The above procedure may vary from country to country as follows:
• USA: The death certificate, along with the funeral permit, is processed by a certified funeral
director who sends the funeral permit & death certificate to the Ministry of Health.
• United Kingdom: A medical certificate issued by the last attending physician is sent to the
local registration office along with the death certificate & funeral / death certificates. The general
registry office examines the case & issues a death certificate.
• Japan: The last attending physician prepares & signs the death certificate. A form will be
completed & sent to the Municipal Registration Office with a proof of identity & a confirmation
of funeral & a form.

The process of existing deaths:

Upon receipt of the death certificate, the now bearer may send it to the insurance company to start
the process of getting the claim. The insurance company then checks the details for processing the
claim. This procedure lasts from the beginning of the damage until payment for at least upward of
six months , depending on the person insured / cause of death.

In the USU. UU., The insurance companies receive information about the deceased on the basis
of the Social Security Number Act (SSN). The death file of this social insurance agency contains
millions of records of the deceased. Insurance companies check this file regularly to see if a
deceased person in the list has policies & if a request has been sent to the insured person. If no
claim is processed for the insured, the insurer takes the necessary measures to initiate & treat
thedeath.
CURRENT CHALLENGES
The registration of the death & the filing of an application for death are lengthy processes for the
close one, especially when it comes to the loss of a family member. Due to manual processes, many
claims are delayed by up to six months, which can traumatize the beneficiary. In addition, the
possibility of fraudulent claims increases as there are multiple data sources in silos throughout the
process. Up to 10% of claims costs are attributable to fraudulent claims by Canadian & US insurers.

The registration of the death & the filing of an application for death are lengthy procedures for the
beneficiary, especially when it comes to the loss of a relative. Due to manual processes, many claims
are delayed by up to six months, which can traumatize the beneficiary. In addition, the number of
fraudulent claims is increasing because there are multiple data sources in the silos throughout the
process. Up to 10% of claims costs are normally said to be claims that are fraud by Canadian & US
insurers.

Blockchain Solution for Insurance Claim

Given the”multiple points of manual”contact both in the process“of registration of death and in the
process of claiming the”death, the industry needs”a unique and a combined process inorder
to”ensure the availability and transparency of information for the multiple
independent”stakeholders involved.
The solution for the issue would require the following consideration:

1. Data protection:
• Rules-based processing - Ensures data protection, compliance“and
accessbased”access restrictions for the data.
• Tracking transaction”data to comply with regulations and perform
compliance audits.
2. Shared”Network:
• Provide access”to write, edit or view transactional”data to multi-party
system. Like in the current”scenarios, a hospital can”share the
information about the“deceased in the department of state health, the
funeral”home and the multiple”processing”insurer for their”respective
tasks.
 • Ensures access to”data to the interested”parties at any time,
thus”reducing response”time.

3. Streamlining of the Process:

• Combines the”registration of death and the death”claim data into a unified
process. Therefore it reduces the complexity of the whole process.
4. Simplicity:
• The common platform for”sharing and updating the data on”regular
basis would make the”process easy and efficient.
• Secure”and transparent”transaction process, will ensure”reliability in
the minds of the users.

Blockchain in the Claim Process

A private blockchain which combines death”registration and death claim”process can be
implemented. Various nodes in the process are:
1. Insurer
2. Hospital
3. Funeral”Home
4. Department“of”Health
5. Beneficiary

Steps undertaken in case of death:

• Suppose the death”happens in the”hospital.
The hospital makes the entry of the deceased person like, the information based
on the cause”and nature”of death, along with his”identification details, for
example, PAN card details, in the hospital archives. The computer’systems of
the hospital will be integrated on the blockchain”network. When the
information of the deceased”is admitted in the hospital”register,
the”information is simultaneously passed on to the other nodes in the
blockchain”network. It will ensure that the data is transmitted”securely to other
nodes, using the cryptographic”hashing”technique for”encryption of the data.
• The information is then retrieved and processed by the insurer node to verify
the presence of an insured person in the records. Blockchain uses rule-based
transaction”processing inorder to ensure that only the intended”recipients
receives the data, in the given case the insurer. For a successful”match, the
insurer requests the”beneficiary for the selection”of a funeral”home through
the given customer”portal.
 • The beneficiary selects a funeral”home from the available”list of
funeral”home, on the customer”portal. The death”registration”procedure also
starts. The blockchain”network would ensures”that the data is available to the
insurer and the funeral home nodes. Thereby ensuring a continuous“flow of
data across all the nodes.
• The funeral home begins the death registration, on receiving the”beneficiary's
request. The head”of the funeral home accesses a portal, on the blockchain
network. The blockchain”network ensures that patient”details are already filled
on the death“registration”form, from the hospital”records, which is to be
completed by the funeral”director. This ensures that the”funeral”director does
not have to check with the hospital for the patient’s”records, thus reducing
delivery”time.
• The death””registration””form is made available on the“”network for the
public health””department. This form is used“generate the death”certificate
together with the burial”permit. The documents are shared with the insurer, the
funeral home and the beneficiary, through the”network. The
blockchain”network avoids multiple”exchanges of the”data, thus ensuring the
data”security. This reduces the delivery”time, and ensures security of the data.
• On”receiving the”information, the death request is processed by the issuer
and the claim amount is passed on the”beneficiary. The amount of
the”insurance”claim is calculated”automatically”on the blockchain”network,
using a specific algorithm. On”determining the amount”of the claim, the
amount”is paid to the beneficiary.
• When the”amount is received by the”beneficiary, he acknowledges the
receipent. Thus the process comes to an end.

“The above process can be controlled by a smart”multiparty”contract”running in

the blockchain”network. All the documents generated in process are stored on the
distributed”database, such as InterPlanetary”File”System”(IPFS). The address
hash for the file”is stored on the”blockchain. This automated”process”ensures that
there is no”burden on the”beneficiary to produce”documents and to regularly
interact with the agents for the further proceeding”of death claim amount. In
reality, the burden is on the insurer to process the requests. This makes the whole
process simple and efficient.”

ADVANTAGES:
• Processing”time of the”claim reduces significantly.
 • The beneficiary’s”task of collecting”and submitting”the death“related
documents is eliminated. Death”registration and claim process is initiated
directly on the blockchain”network in a highly secure manner.
• Reduction in the number of fraudulent”claims, as the entire”data is stored on
the network.
• The blockchain”solution ensures, that solution can be expanded easily to
multiple entries, like addition of insurers”network.

IMPACT AND OPPORTUNITIES OF BLOCKCHAIN

The blockchain is not limited to anchoring the interests of the guarantors, it is constantly progressing in
the direction of an improvement for the other partners of the protection value chain, for example the
controllers, the aggregators of protection, the offices of protection of the environment, etc. Few
arrangements having any effect are:

DATA PROTECTION AND STANDARDIZATION

As all members of the blockchain approach the mutual record, we can expect all current directions to be
followed to the letter. This incorporates disclosure controls of all Proof of Proximity and Well-Being data
provided near the home.

Chance: This is an open door for controllers and safety net providers to meet to discuss its benefits, and
associations working with blockchain should accept this mission. It would also give supervisors the
opportunity to articulate their views on information trade directives and laws and, in the same way, help
industry players to resolve potential problems in order to obtain new information. imaginable results.
From this perspective, controllers can identify a path for an institutionalized biological community that
depends on development and joint efforts.

THE IMPACT OF FRAUD REDUCTION

A blockchain-dependent response with a track that can be verified and that is a natural revision could be
created to reduce the possibility of false exercises. For example, each hub in the blockchain could
monitor updates for each exchange on the specific system, reducing the risk of misrepresentation within
the organization.
Chance: Blockchain can provide end-to-end auditability. Controllers can access POs to minimize
extortion and increase the contribution of rallies, which can help reduce instances of misrepresentation
during a blockchain organization.

Third-party intermediaries & the impact of insurance marketplaces and aggregators:

The reception of the blockchain can become a focus of illness for external aggregators / agents /
mediators. For example, if a pool of safety net providers is brought together, B3i chooses to dispatch a
shopping center to provide specific customer protection, intermediaries can anticipate a decline in their
revenues. On the other hand, if these mediators continue the steps of blockchain construction, it will be
much simpler to obtain backup plans, especially when the brand image and the burial of the connections
are at a standstill. the scale. For these reasons, mediators and aggregators are in a position to become
blockchain.

Chance: a noticeable effect can be caused by external intermediaries and aggregators over the
protection esteem chain by locating their administrations on blockchain stages. A precedent can be
cited: Lloyds of London, the largest commercial protection center in Britain. This organization has
launched a blockchain-backed protection scheme application for the sharing economy. It has partnered
with a start-up named SafeShareGlobal and a roommate company, Vrumi, to market protection
administrations at the request of homeowners while sharing their homes. This was a crucial
achievement by external mediators within the organic blockchain community.

FUTURE SCOPE

Blockchain has brought about a dramatic change in the business model and technology of the
insurance industry. The insurance industry is still adapting to the banking sector to understand the
full operation of blockchain commercial technology in its value chain. Among all the features
offered by this technology, Smart Insurance Contract is one of the most interesting. By automating
the insurance policy by signing a smart contract, settling the claim for an insurable event and
without the policyholder having to file a claim or the insurer having to handle the claim, this feature
therefore attracts interest of insurers around the world. One of the most attractive aspects of
blockchains is to limit fraudulent requests because the data is decentralized and immutable. A
decentralized autonomous organization (DAO) can significantly transform the insurance sector.
Autonomous insurance business model, DAO helps to manage the policy and claims. DAO is
formed by a group of underwriters in which no person or organization takes control. It's just a
corporate entity without any human being. DAO is currently trying to be implemented using
several blockchain solutions, such as Dynamis.
In addition, various blockchain consortia and industry initiatives bring together insurance
companies to set industry standards and conduct research on various PoCs. In order to explore the
customer potential of distributed accounting technologies, some European-based insurers have
recently taken the initiative in launching the B3i. The primary goal of using B3i is to explore the
possibility of using the blockchain to develop standards and processes for industry-wide use and
to accelerate efficiencies in industry. This is one of the first combined efforts of various insurance
companies to offer blockchain-based solutions.

CONCLUSION

Blockchain is able to introduce new business models, reinvent existing insurance processes and
increase the capacity of insurance providers. To be perfectly ready for the changes brought about
by blockchain technology, the following recommendations are recommended to insurers: -
• Begin by evaluating the blockchain's alignment with the company's IT strategy.
• Next, propose a plan to understand blockchain operations in various companies and develop
capabilities.
• In order to help create a more streamlined and secure ecosystem, insurers need to be a leader in
promoting blockchain-based solutions across a range of enterprise players.
• Insurers can join important industry consortia or even work on building smaller consortia with
key stakeholders.

The key to success lies in the appropriate implementation of technologies such as blockchain, in
order to bring significant value to businesses.