Blockchain may be key to streamlining insurance payouts.
FEMA (The United States Federal Emergency Management Agency) is looking at blockchain technology to try to improve insurance payouts for after disasters.
FEMA is recommending that the registry of property and land be established which will use blockchain to store all of the information needed when filing an insurance claim.
The agency believes that creating a property registry using blockchain will assist in increasing the speed at which insurers respond to disaster-related claims.
FEMA believes that this type of registry would not only speed up and facilitate claims but could also lead to a reduction in self-insurance rates in public infrastructure. This, it says, usually means a total lack of insurance and eliminating this will reduce the amount of money that the Government has to spend to cover unfunded disasters and their impact on public buildings.
FEMA is looking at other technologies alongside blockchain to try to improve upon response rates in cases of disaster, to help increase the effectiveness of recovery efforts while maintaining the data in a secure environment.
Blockchain has already been successfully used in insurance worldwide. For example, Oxfam International, a large charity organization based in the UK, has recently successfully delivered insurance payments to rice farmers in Sri Lanka through a block-chain delivery system.
Blockchain has the capability to transform the claims process, making it simpler and quicker which will ultimately reduce administration costs leading to lower premiums for the customer.
Additionally, the British Virgin Islands has now introduced a crypto infrastructure in collaboration with the blockchain company Lifelabs.io. The system has been in place since April and looks at facilitating the rapid payment of aid and other funds in emergencies.