Property & casualty insurance (or P&C insurance) are some of the most common insurance use cases we support at Yameo. We have dedicated solutions like Video In Person for remote evidence collection, our offline photo application or dedicated whatsapp automation solution. You can learn more about each by clicking the links. But back to P&C claims and where we see blockchain may be currently under utilised by insurance leaders. What is the value of Blockchain in P&C claims and underwriting?

Blockchain in P&C Claims 

So how do I see P&C claims benefitting from blockchain? Well, firstly, new insurance processes and business models built on blockchain will call into question current orthodoxies and challenge multiple pain points that are prevalent across the value chain. These include: 

• Fraud prone 
• Inefficient exchange of information 
• Complex liability assessments for reinsurance 
• Limited Underwriting accuracy 

• Manual claims review & processing 
• Use of middlemen 

Right now, I believe underwriting and claims processing are the areas most dominant where early adopters in the industry see a clear-cut value in blockchain. 

For underwriting: 

Risk assessment 

• Enable verifiable sourcing of data 
• Transparency on existing or past insurance policies and claims associated with a P&C claim 
• Enable shared interfaces with trusted third-party data providers such as real-estate registries, notary services and others.

Quoting 

• Smart contracts to capture obligations and terms binding between insuree and insurer. 
• Transparent quantification of risk leads to higher accuracy of pricing.

Onboarding 

• Provide fast and seamless experiences in binding policy to insurees. 
• Capture better quality and verifiable information 

The benefits 

I believe the main benefits for underwriting will be in improved risk profiling, information exchange, and automation via smart policies. These benefits, if realised, open the opportunity for new business models where an insurance provider can offer real-time and with greatly improved accuracy services to insurees via an automated process where no human intervention is required and where the whole process (including binding of the policies with insurees) is recorded, stored and near impossible to tamper with. 

For P&C Claims Processing:

Claim Registration 

• Trusted and verifiable claim data submitted 
• Automated pre-assessment of loss coverage against policy 
• Smart assets/property enable auto-submission of claims through a secure and transparent process. 
• Reduce response times by automating responses with preferred repair & assistance providers. 

Claims Assessment 

• Enable automated determination of loss liability 
• Automated assessment of loss coverage for reinsurance 
• In case of complex claims – auto-escalate to human decision-making intervention. 

Payment & Closing of claim 

• Via smart contracts provide auto-payment 

• Provide clear and transparent proof of claim settlement. 

The Benefits 

Faster, cheaper, and more reliable. Sounds great, doesn’t it? To be honest, those are the benefits I see for P&C claims processing with blockchain. As an insurance company, you can be faster through automation, process more claims, reduce fraudulent losses, and automate claims registration, handling, and payment -giving you an edge over your competitors in terms of customer experience.

Yameo builds industry expertise having worked with in the Insurance market for over 17 years. When we write bout Blockchain in P&C claims and underwriting, we do so based on our experience and customer discussions. Want to read why we focus on this Industry expertise, check our blog article.