How Can BlockChain and Crypto Affect Health and Life Insurance
Science and technology have been taking a new phase in today’s world, not just in the economy or in the business aspect of life but also within the health and life insurance policies.
Health and life insurance sectors have been downed with several challenges over the years. These challenges spanning across many sectors are now major players in affecting their productivity and effectiveness in meeting the demand of people who seek their services.
The adversity that these health and life insurance companies & small business in general are being faced with ranges from;
- Handling the increasing costs of health facilities and that of life insurance.
- Discerning the customers that seek their support.
- Disruptions that emanate from various innovations.
- Expectation and demand from the customer in upgrading to the new and evolving technology.
- Digital, increasing risk factor that looks more complicated and much more.
Of course, no service can personally change or solve all these problems at once. However, there is a way to mitigate the effects of these problems. One of such ways is through the effect of bitcoins and cryptocurrency. Now comes the question of how can Blockchain and crypto affect health and life insurance? To understand how we must learn what they are.
Blockchain and Crypto Defined
Blockchain is a decentralized system of a database used to collect and record information stored electronically and securely. The word block stores a set of information in groups; in the form of blocks, and when one block fills up, another will be formed and attached to the previous, making it a blockchain. It is an efficient way to share information and store data globally on servers securing it from manipulation, change, or hack.
Blockchain technology comes with transparency to create a secure communication channel with different partners worldwide. With this, everything is supported, from the supply chain to the payment network, health care data sharing, and more.
Crypto is a form of currency in digital form which has been designed in such a way that it is much secured. It is stored in the form of a ledger that cannot be controlled by individuals; neither can it be manipulated. It makes use of what is called cryptography in securing the transaction that occurs. Cryptography also records and oversees the creation of coins and transaction verification. It is a decentralized mode of currency not owned by any financial powers.
Having considered what Blockchain and crypto are all about, how can it affect the health and life insurance industry in this present-day technological world? Can it be introduced and adopted by the health and life insurance companies to bring about transformation and, in a way to maintain how records are gotten and stored? Will it fit in executing the transaction, communicating and reaching out to customers? Will it aid in managing risk and being up to the task in the sector? Let’s find out.
The effect of Blockchain and crypto in health and life insurance
Blockchain and crypto being incorporated into health and life insurance will be of positive use in the following ways:
- Traditional records can now receive more secure storage, and information will be exchanged and transferred without any form of alteration.
- Making use of Blockchain and crypto will ensure the privacy of individual medical data and insurers.
- It will grant access to patients and insurers to share their record without obstruction or delay.
- Blockchain and crypto will create a trust system, strengthening the relationship between the consumer and the health and insurance companies, knowing that their information cannot be tampered with illegally.
- It will enhance the proper organization of information, which will be well knitted together.
- For the health sector and life insurance companies, using Blockchain will reduce the cost incurred annually on administrative personnel’s running.
- Blockchain will give more value to the health sector’s production and services and life insurance companies, enabling them to operate effectively.
For every pro, there will be cons. having examined the new dawn that Blockchain technology is introduced to the health and life insurance will bring, let’s examine some of the adverse effects that may as well surface.
- Using Blockchain and crypto in health and life insurance will require huge computing power due to the algorithm required to encrypt the database and secure it properly.
- The processing of information into it might take a while because of its complexity.
- Consumer handling may not be that effective because of its decentralization, which may pose a problem.
The world of technology is fast rising, and as the day goes by, new inventions take over the old way of thing. Blockchain and crypto are all parts of the new age that can serve a lot of security, payment, and information transfer difficulties. Using them has its complications, but if a solution can be found for yesterday’s impossibilities, it is more than enough.