D.O.C Paperless helps Insurances safely manage contracts and claims
Updated: Apr 6
Insurance is one of the oldest industries in the civilized world. Traders have been insuring their goods for 1,000 years.
With the internet generation and now, the pandemic crisis insurance companies need to accelerate their transition to digital to continue to develop their relations with clients and partners. Going digital make them facing new problems, principally based on (cyber) security, privacy and trust.
Blockchain technology is making enterprises everyday activities more convenient and secure and can help to solve these problems while providing more benefits to the sector.
Regarding insurance, DOC Paperless and its blockchain base services can streamline, and enhance the infrastructure in silos of the sector using a shared safe and permissioned distributed ledger of common information and smart contracts for tasks execution.
Going paperless with secure blockchain solutions can first simplify operations between the parties involved. A large part of the challenges results in inefficiencies and increased difficulties in insurance processing. They impact insurers, policyholders, and all parties involved in onboarding and claims.
Our customized solutions for insurance services can enhance simplicity and efficiency by establishing new processes, addressing multiple pain points prevalent across the insurance value chain, like claims processing and settlements, client onboarding, interactions with partners and more.
As an example of how DOC Paperless can help insurance, we will focus below on solutions to securing and automating Insurance claims processing.
But the suite of services can be used for the management and tracking of internal e-document, insurance premiums, interactions with partners and customers onboarding.
How DOC Paperless blockchain ledger and smart contracts can be used for claims processing?
The permissioned parties associated with an insurance claim can access the distributed insurance ledger to view policy details. On the other side policyholders can digitally connect with insurance or partners (like car dealers) to provide information such as insurance policy references, claim forms, and evidence to support claims. The information will be integrated in a new e-claim application and recorded to the immutable and incorruptible (means trustable) distributed ledger.
All of this interaction is happening on the blockchain and at the same time smart contracts will drive the workflow to manage the claim.
The secure blockchain architecture can records on the distributed ledger, the active policy and launch certain actions via smart contracts based on pre-determined claim conditions. Then, the claim after validation can be processed without requiring human intervention and decrease the likelihood of human processing errors.
Below an example on how claims can be managed with DOC Paperless
Customer apply for a claim
The customer or insurance partner (e.g. car dealer) open a claim application via a web portal or a mobile application and follow the claim request procedure for its approval.
They need to share (upload) documents supporting evidence, photographs, and other claim-related details. The application and documents with their respective transaction fingerprint and timestamp will be recorded on the incorruptible distributed blockchain ledger. They will be accessible by all stakeholders permissioned to access the system.
The auditor validates if a policyholder is liable for the claim or not.
When a policyholder makes a claim request and submits supporting evidence documents on the platform, auditors get notified to start the verification process. They perform an in-depth verification and validate if the documents submitted by the consumer are genuine. If they find the evidence accurate, they approve the claim request and add a report with details on the blockchain ledger.
Insurance company process the claim
Once the auditor has approved the request, the insurance company can forward the breakdown of the claim account to the consumer or insurance partner. Finally, the claim amount gets automatically transferred to the policyholder or insurance partner with the help of smart contracts.
How blockchain can continue to improve claims workflows?
The blockchain is a distributed ledger that is virtually immutable. This technology allows users to automate any type of value exchange in a secure and easy-to-audit manner. Insurance users can also use smart contracts to develop predictive analyses and actions. The DOC Paperless solution for insurance can be customized to enable a series of “if this, then do that” statements that automatically trigger when a certain condition is met.
All recorded data can be verified automatically with code. The networks’ participants can choose to set different permission standards to avoid any privacy violations and to reduce the time of claim management in certain conditions.
For example, the insurance company can decide that if a claim amount is below X and the previous number of claims in a certain period is below Y for a policyholder liable for this claim, the claim can be automatically processed via smart contract and recorded on the blockchain ledger.
Once the data is recorded on the blockchain, it becomes tamper-proof. Insurance providers will be able to automatically track and reconcile all submitted claims with the application and data shared.
DOC Paperless is using an innovative document passport solution and a Zero Knowledge Proof technology to reinforce the privacy of the policyholder data while giving permissioned stakeholders access to verifiable elements and immutable audit trial. The security of the documents (i.e. contracts and claims) is also reinforced by a blockchain layer based on a Distributed Files Storage technology before to be stored by the insurance client system.
Recap of the benefits using DOC Paperless customized for Insurance
In short, blockchain technology can ensure that valid claims are paid faster.
The benefits of deploying smart contracts for claims management are threefold:
- Smart contracts can replace traditional human-supported operations and ensure timely assessments and payments to or from policyholders.
- Transactions on the blockchain are fully automated and require little to no approval by third-parties, thus resulting in lower administrative costs and higher accuracy.
Blockchain can also eliminates the chances of fraud and breach while enabling higher industry-wide data transparency and interoperability. It allows to access a complete transaction history and asset provenance maintenance within a single source of truth.
for a demo and to setup a POC (Proof of Concept) please contact us (info@Doconchain.io) and for more information about our solutions read our blog and subscribe to our newsletter.