Blockchain to Strengthen the Malta Insurance Industry
Malta’s ascension to EU in 2004 attracted a number of insurance and reinsurance companies to the jurisdiction which mainly services the European market. Blockchain company HashCash Consultants will be collaborating with a leading Life Insurance company to bring their operations to a blockchain network.
Industry overview in Malta
The Distributed Ledger Technology or DLT has made significant advancements across industries, and Malta has welcomed the change in most sectors. The world’s first blockchain nation will also see this innovation play a bigger role in its insurance market. The Insurance sector, as of 2015, reported of fifty-eight insurance undertakings. Forty-two of these undertakings were authorized for general business, two composite, seven long-term businesses, and another seven reinsurance firms. The same year also saw a 33.6% increase in gross written premium to €3.78 billion from €2.83 billion in 2014.
Two years after Solvency II brought about landmark regulatory changes, the insurance industry is undergoing another year of reformation in 2018. The Insurance Distribution Directive (IDD) and the General Data Protection Regulation (GDPR) are incorporating new-age technology to refashion insurance distribution in Malta and the EU.
Blockchain in Insurance
A blockchain network provides a transparent ecosystem for collaboration between multiple companies to optimize sharing of relevant records essential to all parties and streamline claims recovery. The blockchain ledger is decentralized, distributed, and operates on a consensus mechanism that reprises every member or node in the network of any alteration in records. Its shared ledger capabilities can help insurers agree on claims, build trust that evidence is being shared and improve the overall customer experience.
Another central feature to blockchain is smart contracts, and it radically changes how the insurance payout process pans out. It would minimize insurer costs and claims administration costs. Policyholders could subsequently receive savings in lower premiums from insurers, or go a step further and have the option of choosing a refined insurance cover for smaller events. Under the traditional system, it would be impractical to initiate a manual claim process for those.
Smart contracts would enable automatic policy adjustments as a response to pre-determined events or information. Such a system would expedite claims payments, giving policy owners their rightful money in much less time than its alternative which normally takes a week.
HashCash in Insurance
HashCash provides HC NET Blockchain which can be used by insurance companies to convert multiple policies into smart contracts. This would produce a single, consolidated view of policy data and documentation in real-time. The insurers will be able to furnish visibility into coverage and premium payments, and update network participants with automated notifications following payment events.
HC NET Blockchain can be the vital link across a vast ecosystem of third-party administrators and service provider networks. Being decentralized, the inherent transparency of the digital ledger optimizes claims processing by reducing the scope of errors by insurers. Better provider management and lower operational expense would be a natural consequence of this.
The blockchain solution offered by HashCash ensures contract certainty and enhances risk-handling capabilities, fraud detection, and risk prevention.
About HashCash Consultants
HashCash Consultants started as a Blockchain Consulting Company in California. Today, HashCash products enable enterprises to move assets and settle payments across borders in real-time using HashCash Blockchain network, HC NET. Financial Institutions use HC NET for Retail Remittances, Corporate Payments, Trade Finance, and Payment Processing. HashCash also runs the US-based cryptocurrency exchange, PayBito and the leading Cryptocurrency payment processor, BillBitcoins. HashCash offers cryptocurrency exchange and payment processor white label solutions, comprehensive ICO services and customized use case design and development. HashCash propels advancement in the field of blockchain through the Blockchain1o1 program and its investment arm Satoshi Angels.