Insurers, the insured, and law enforcement officials just got closer to accessing a streamlined and secure tool for proof of auto insurance. This was after a blockchain-backed application was launched that uses RiskBlock, a revolutionary platform that could change the insurance world.
RiskBlock is the first framework that runs on the blockchain to be built specifically for the insurance industry. Nationwide has agreed to be the first one to adopt his system. The aim is to make it more efficient to conduct real-time insurance cover verification. This enterprise-focused platform will offer numerous insurance solutions in a single framework. RiskBlock was the brainchild of The Institutes RiskBlock Alliance. It is a consortium with an intense focus on the insurance sector.
The Problems RiskBlock The Institutes Seek To Solve
According to the CEO of The Institutes RiskBlock Alliance, the current method used to provide proof of insurance is complex and still leaves a lot of doubt. By using the blockchain to share proof of insurance, it will help to streamline the entire process of providing proof and mark the start of a revolution in the insurance sector. He added that their current collaboration with Nationwide was just the first step in improving the entire insurance system.
Understanding Blockchain Technology
The blockchain is an upcoming technology that has the power to simplify and secure how financial transactions take place. The RiskBlock framework utilizes the blockchain to ensure that the insured have a method of verification that is real and accurate. As a result, it lets law enforcement officials verify proof with confidence and with speed without having to check paper forms. Besides that, the insurers will benefit from an efficient and cost-effective method of offering proof of insurance. Soon it will be possible to share trusted verified proof of insurance with just the click of a button.
According to the VP of IT strategy at Nationwide, blockchain is an important technology that will bring a revolution in the insurance industry and financial services in general. He added that they were excited to be collaborating with RiskBlock in the reimagining of insurance verification. This was especially so considering that the process had remained unchanged for decades. According to him, this new platform will enable them to come up with a program that is a win for all those involved in the verification process.
RiskBlock Paperless Proof Of Insurance Tool Future
According to the founders of this project, being able to verify insurance coverage is only the first step for their work in the insurance sector. The members of this consortium anticipate that the technology will help to serve policyholders better and reduce costs by:
- Streamlining the process of premiums and claim payments
- Cutting down on fraud via the use of centralized recording system
- Improving the process of new customer acquisition by being able to validate customer data fast
The Institutes RiskBlock Alliance is a consortium that comprises of over 30 companies including the top 10 insurance brokers and reinsurers in the nation. The first company to use the system will be Nationwide Insurance, but others will soon follow.