Computer technologies penetrate deeper into our lives every day, including insurance innovation. Everything related to ensuring people’s health and financial support has long been entered into local databases. Recently, IT companies have offered to use Blockchain for insurance. It helps avoid errors, reduce the burden on administrative staff. Also, it speeds up the processing of patient data and bills. You will learn more about the globalization of health care and its financing in our article.
What does Blockchain in insurance look like?
Technology trends in insurance are leading to more and more process automation. The less workflow, the lower the likelihood of errors or loss of documents. Blockchain and insurance allow you to make entries to the registry once and for life. There is no possibility of deletion in the future (as long as this network exists). It also becomes impossible to forge documents. Moreover, every insured patient has direct access to personal payments. This technology is completely transparent to users. But the data of other network participants remains confidential. The absence of central database storage ensures high resistance against hacker attacks.
Blockchain: How does it work?
There are several scenarios for using Blockchain in health insurance companies:
- Creation of a global database of medical documents. It is available to the patient, insurance company, and prescribing doctors. Each patient makes records or give his consent. It is impossible to complete transactions without the knowledge of all participants. Participants cannot reverse or delete the transactions.
- The introduction of smart contracts allows you to shed insurance. You also can pay for a doctor’s prescription, without the participation of the patient.
- Decentralized protocols help to simplify document flow and speed up all financial transactions.
- The process of applying for insurance is reduced to registering an account in the system.
- Pharmaceutical companies can also be included in the chain. The doctors send prescriptions to the pharmacies. The insurance company sees the transaction and covers the client’s expenses.
The Rise of Blockchain In Healthcare
To use IT technologies to the fullest, all hospitals, clinics, insurance companies, and pharmacies must put in place Blockchain. Drug suppliers and people with insurance policies should also be added to this chain.
Optimizing Health Coverage Through Better Data Management
One of the improvements to the existing system will be the transparency of transactions. Consider the number of intermediaries between the client and the insurance company. The data may be distorted. Sometimes the information appears out of time. Blockchain technology solves this problem by providing a common network for all users. They are customers, insurers, doctors, pharmaceutical companies, pharmacies, and so on. Moreover, each user sees only the information that relates to him. Your surgeon will not see the dentist’s notes if it doesn’t matter during the operation.
How is Insurers Will Enjoy Using Blockchain?
Blockchain technology will allow insurance companies to focus on solving practical problems. They can avoid a one-size-fits-all approach. The reduction in document circulation leads to a shorter distance between the client and the insurance agent. The growth of trust contributes to the establishment of long-term partnerships. The smart contract system helps to work more by involving fewer employees in the process.