Inschain Solution to critical issue in insurance industry
Critical issue in insurance industry
1.The frequency of risks is high: accidents happen every day. According to the World Health Organization, the accident has been upgraded to the third leading cause of death. In global, only the traffic accident had been cause 1.25 million death each year, which equivalent to an average 3,424 death per day or average 2.37 per minute. In other words, at least 1 people had been death during the 30 seconds you read the short text. However, majority countries especially Asia had been extreme under insurance concern with the statistics showing that Asia countries accidental insurance coverage rate is only one-fifth that of the United States.
2.Expensive costs: There are a lot of labor costs in the existing insurance system including sales commission, operating expenses, fund reservation calculation , and company profit. These costs are extremely expensive, accounting for about 30% of premiums.
3.The process is not transparent: the centralized model system had great ethical concern in areas such as user information storage, calculation premium and liability payout. The system does not ensure equity, fair and leak of transparency.
4.Insurance fraud happens frequently: Insurance fraud is a difficult problem for centralized insurance organizations. Insurance companies generally avoid losses by raising premiums
5.Privacy Protection : You must have heard about the user privacy issue for Facebook. Insurance companies have more sensitive data. How to safely store customers' privacy is always a pain point for insurance companies.
1. Cutting edge technology: Blockchain is a trust machine, and its decentralized distributed ledger can permanently record any detail in the business process. Inschain further integrates artificial intelligence and big data analysis modules to generate smart contracts to fully automate purchases and claims. This will significantly reduce claims fraud, reduce real risk losses, and reduce costs.
2. Mutual aid model: Inschain committed to building an smart mutual aid service platform based on the block chain. We study in depth the origin of insurance - mutual, and demonstrate that the block-chain-based mutual aid model will benefit the general public. This model not only provide users with affordable and fair prices but also create a more secure, trustworthy,and community spirit group. For example, our Accident Mutual aid project sets reasonable contributions and low threshold qualification amount. In the event of no accident, the account balance will not be changed and the mutual aid benefits will continue to be valid.
3．Open and transparent: All the procedures, including the files generated by it, will be uploaded to the blockchain and stored, so that any event can be queried in any place and it is completely transparent.
4．Publicity announcement: Third-party investigative agencies will conduct independent investigations of accident and the results will be shared with external professional teams for further evaluation. After being verified, the users will be able to participate in publicity and report dishonorable publicity. This will greatly solve the problem of integrity and fraud.
5.Identity authentication: The applicant's identity is stored in the blockchain. This information will not be distort and stored permanently. In order to access the information stored in the block, authorization from the user is required.