Feeling Insured

Frequently considerations of decentralized technology’s future social implications present freshly differentiated images of somehow superior methodologies that may be radically different than the present day. Yet the decentralized recording of centrally controlled operations could instead be a marked degradation to both the technology’s potential and developmental promise. Without an equivalent preceding structural change, the introduction of decentralized technologies into established industries wishing to bolster rather than improve service offerings should give us all great cause for concern.

In a factually based, well-known business school anecdote a case of one of the first life insurance claims is often repeated. Shortly after this type of policy became available a life insurance policy holder did indeed pass away during the applicability of his high-payout protection. When the family of the deceased attempted to claim, the insurer wrote a new definition of how their company calculated ‘one year’ so as to [successfully] avoid settlement.

Spoken of as commendable industrial ingenuity or defenseless profiteering would most likely depend on whether it was relayed in a strategy or ethics lecture. However, with this tale in mind we now turn to the introduction of blockchain technologies within the insurance industries:

“ORLANDO, Florida – Blockchain technology has a future in workers compensation transactions as the technology has the potential to improve communication and efficiency industrywide, a presenter told attendees of the National Council for Compensation Insurance Inc.’s Annual Issues Symposium on Friday. Blockchain is a decentralized, peer-to-peer network that provides insurers and stakeholders a way of “producing, storing, managing and sharing data as a secure record of transactions,” said Paul Meeusen, head of distributed ledger technology and director of finance reinsurance at Swiss Re and CEO of B3i.

Blockchain consists of a distributed ledger, consensus providing a “single version” of information, cryptography for secure and authentic transactions, and smart contracts, which are auto-executed under predefined conditions, Mr. Meeusen said. In a traditional insurance system, there is an inefficient flow of information from policyholder to insurer to reinsurer to capital market, he said. Mr. Meeusen explained how the technology works to create efficiencies rather than collecting and examining data in separate systems.

“We are working together, but we keep control of our data,” he said.

For workers compensation, blockchain can allow stakeholders opportunities for sharing personal and medical information, providing a secure place to store and access data. The technology would also allow for verification of comp coverage across the blockchain platform, he said. Blockchain also allows for real-time messaging and confidential sharing of information across the industry, he added. “There is definitely an efficiency component here,” said Mr. Meeusen.” May 19th 2018, Louise Esola on Business Insurance

The blockchain may indeed offer transparent, decentralized and immutable recording of digital data entries. Possible extensions utilizing automatically executable or complexly triggered ‘smart contract’ events are also numerous. This is without question. The quality of the content though is perhaps something often either overlooked or simply subsumed into the excitement of the technology.

To replicate existing methodologies through new means may be to forgo opportunities of improvement. In other words, regardless of an insurance policy being held centrally by the issuing company or recorded via decentralized technologies, this says nothing about its practical implementation. The same issuing company formulated and enforces the terms.

The caveats, clauses, loopholes and conditions of many insurance policies that prohibit payouts to holders are too numerous to list here in detail. It is sufficient to say that for many they form a recognizably accepted portion of the insurance process. To now immutably digitize the insurance company’s terms and conditions with complexities that may not wholly be understood by the individual holders of such policies confers only benefits to the issuing company.

As rather than a personable exchange, clarification or justification in any lack of comprehension here the holder’s digitally immutable and time-stamped agreement with such a document is forever locked. While the transparency of the documents themselves may be set, the comprehension and honoring of the policy remains largely one sided. The use of immutable records is only beneficial provided sufficient knowledge of the meaning or implications of these records exists. A convoluted and one sided policy remains just that, whether on or off the blockchain.

The very presence and survival of the hugely profitable insurance giants should hint at the business structure. Ultimately, like a casino, the company’s calculations and metrics are superior to our understanding of probability.

Like a round at the blackjack table a player’s chance at profit or their enjoyment in the risk of participation itself outweighs what is essentially a guaranteed loss when measured on a sufficient time scale. The house always wins. This is why there is the [well decorated and ornately furnished] house itself. Aside from investment strategies as well as a multiplicity of financial activities, at its core insurance coverage exists as the house is betting that we, the policy holders, are wrong.

For any business it is unsustainable to payout more than you receive. Therefore the range in choice of insurance has and continues to be available as the purchasing of these, over a long enough time scale, earns the issuing company more than it costs for them when paying out.

This is not to marginalize a host of potential benefits, protections and security provided by insurance offerings. As with automobile accidents for example, in a cost benefit analysis one’s deference to experienced centralized behemoths for resolution may simply be prudent and well worth such costs particularly in consideration of the alternative’s possible time requirements. It is simply to state that throughout all insurance offerings, the house [an insurance company] exists because it remains profitable.

When blockchain technologies are purported as a panacea for development and the future of industry, perhaps we should all first step back and question whether we genuinely understand the policies themselves before getting too excited about their immutable recording.

How Modern Insurance Policy Systems Are Reinforcing the Insurance Industry

It’s time insurers threw off the shackles of their legacy systems, which add to the oppression of market pressures by hampering the effectiveness of their operations. But to do so, they need to recognize the improved functionality and additional value a successful PAS transformation could bring to their businesses first. Truth is, not all are willing to realize the value from a flexible policy administration system (PAS) with its different modules.

There’s no doubt that the modern PAS is transforming the insurance industry and making it possible for insurers to regain lost ground through impacting its people, process and technology; while offering unmatched levels of availability, reliability and security. Among other things, insurers staying loyal to their legacy system must face some hard truths:

1. Gap between the Haves and Have-Nots: Insurers depend heavily on their legacy systems to support their core applications. They support day-to-day tasks like the issuing and servicing of policies, processing of claims, as well as underwriting and billing processes. This makes insurers reluctant to tamper with their legacy systems. But this highly regulated and document intensive industry is being seriously hampered by the limitations laid down by their legacy systems. Insurers who remain committed to their inefficient but functioning legacy systems are manually processing piles of papers, and re-keying data between systems creating tremendous bottlenecks and time lags in their performance. They also generate inaccuracies which are bound to cause further bottlenecks at a later date. On the other hand, by adopting a modern PAS, insurers gain tremendous agility in processes and can easily modify old products and rollout new ones, with reduced time-to-market. As more insurers turn to them, half the industry is transforming its processes, its way of functioning and leaving the other half woefully behind, on customer service, efficiency and competitiveness.

2. Rules digital transformation out: Legacy systems operate on languages and system architectures which were developed in the ’70s and ’80s. Their age makes them completely unsuited to support digital transformation, in these times when every industry is porting its data to the cloud and employing big data applications to derive strategic and actionable business insights. Insurers who understand this are adopting a modern PAS to quickly initiate the changes needed to embrace the digital age.

3. Incompetence: There’s no doubt that insurers without a modern PAS lose out on service enablement, technological relevance and product speed-to-market when compared to the insurers who adopted one. Some of them may have already adopted other systems which helped them to extend the legacy system, requiring a highly knowledgeable team to undertake the required customization and core system modernization. If the insurer rejects the modernization wishing to mitigate the risk of a failed implementation and data migration, it may result inevitably in incompetence and a regrettable loss of market share.

4. Not Really Risk Mitigation: Being risk averse and avoiding disruption comes naturally to the insurance industry, but cannot be so comprehensive that the insurer avoids the adoption of a new technology fearing the risks. As the world around them is porting its operations to the cloud, they must accept a modicum of disruption in anticipation of achieving their vision for the technology they need and the resulting benefits from the digital transformation.

5. Implementation concerns: The importance of replacing outdated technologies and antiquated development methodologies needs to be recognized by businesses. They must also recognize and modify any other structural constraints in the processes. Fear of implementation failure cannot come in the way of an assured opportunity to gain competitive advantage by transforming one’s legacy system.

While all these concerns are holding some insurers back, others stay market-focused and are driven by business needs to undertake core system modernization. Their businesses flourish, while others flounder, as such upgrades improve their responsiveness. They close the gaps in their product and distribution strategy and provide superior customer service to retain existing customers and reach new markets. Their improved services are reinforcing the insurance industry itself, making it stronger and more attractive to its customers.

Get An Auto Insurance Protection To Protect Yourself From Financial Hardship

It is just like other insurances which is used to protect your financial losses which have occurred to your vehicle. It is, insurance that can pay for accidental/no accidental damage happened to your purchased vehicle.

Well!!!!! Buying insurance is more about buying a promise of someone, who assures you to regain your whole again if something wrong happen to your purchase.

The Automobile is one of the largest investments you make in your life. Just imagine a world without auto insurance. The at-fault driver would have to pay some amount to the accident victim for pain or damage out of their pocket. And the people who are injured at no fault are entitled to have their car repaired, medical bills from resulting injuries and other injury-related expenses paid by the insurance of the person who was at fault. But if the person at fault does not have insurance coverage, then he/she have to pay for those expenses out of their wages.

It Offers Different Levels of Cover For A Driver:

Uninsured Motor Vehicle Coverage – Uninsured motorist insurance can help pay your medical expenses and other related damages if you get in an accident caused by a person who doesn’t have liability insurance.

Collision Coverage – If you have an expensive car or one that is relatively new, this coverage will pay for the repairs to your car if an accident happens.

Liability coverage – It relates to your legal and financial responsibilities. It’s a basic insurance coverage that includes both Bodily Injury and Property Damage to other people if you’re at fault for an accident.

Medical coverage – It refers to the medical treatments, your hospital bills along with those of your passengers will be paid in this coverage, no matter who is at fault for an accident.

Comprehensive Coverage – If something happens to your car other than accident like weather damage, you hit a deer, your car is stolen, and Collision & Liability coverage won’t include these situations. Although Comprehensive insurance can be costly, if you have a lien holder, this coverage is required.

Importance of Choosing a Professional Agents:

A good Auto insurance agent has the ability to help you find the best coverage that will suit your personal requirements and vehicle types. By hiring an agent from Lane’s Insurance, you can save your time and find the most affordable car insurance coverage in a short time.

Benefits of Auto Insurance:

Auto Insurance replaces your car if it’s stolen
Auto Insurance repairs damage from animal collisions
It repairs weather damage
It covers flood damage
It covers fire damage
It Grants Peace of Mind

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