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The Rise of Blockchain Technology and How It Is Helping Insurance Adapt In Developing Countries – Niraz Buhari

LONDON, UNITED KINGDOM, September 24, 2021 / -- Purported Bitcoin founder, Satoshi Nakamoto, said in one of the Bitcoin blockchain’s earliest publications that “cryptocurrencies could provide a significant benefit by overcoming the lack of social trust and increasing the access to financial services”.

Blockchain technology is a decentralized (owned by everyone, controlled by no one) record that provides trust and security to industries that deal in sensitive information. Financial tech startups, I.T. infrastructure companies, and insurance providers are prime for blockchain disruption.

Developing nations are now seeking the benefits of decentralized currencies and services. Shaky infrastructure and inconsistent governmental support make these regions perfect candidates benefit from blockchain technology.

Most first-world countries offer complete healthcare or provide numerous options to obtain healthcare in an affordable manner. Developing nations do not have the same luxury and must look to costly and unreliable health insurance companies.

Assuming that a citizen of a developing nation can afford to contract a health insurance provider, they must also trust that the service will actually cover them in a time of need. Immutable blockchain contracts and ledger entries are a more attractive option than physical records or isolated networks that are subject to tampering and damage.

How Can Blockchain Help Provide Insurance To Developing Countries?

A majority of the population in developing countries does not have access to health insurance. Health insurance is extremely costly in Developing nations due to high administrative costs and the difficulty in confirming claims. Blockchain records help insurance providers have more confidence in claims and reports.

Traditional insurance agencies operate on a ‘pen and pencil’ based system where clients contact insurance agents who then perform the liaison activities to provide the best options for the customer. Healthcare records like birth certificates, records of treatments, and previous insurance coverage are subject to damage and misplacement.

This is an especially difficult model for developing countries. Most Developing nations experience problems with consistent internet connections and phone service.

Smartphones and cloud-based blockchain solutions provide an answer.

Insurtech companies based in stable parts of the world can work directly with customers through their smartphones. The companies provide one on one consultations with clients and maintain permanent records of treatments. When client records are available it allows insurance companies to seek out specialised doctors and treatment plans.

Payments made through blockchain insurance applications are secure and immutable, meaning, they cannot be stolen or disputed.

UK’s award-winning insurance provider Smart Cover has recently unveiled the rollout of new technology that guarantees customers instant access to home, vehicle and Private GP Service cover when they need it most.

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Smart Cover
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