Empowering Pay-as-you-go Insurance with Blockchain

By Apac CIO Outlook | Tuesday, August 04, 2020

Blockchain technology helps to create an authenticated tracking system of transactions or events. It is self-managed, secured, accountable (through the use of a ledger), and works with a set of rules and a calculation process. This innovation is modifying the trust that has been broken for quite some time amongst insurers and policyholders. Some insurers are revolutionizing the way one can pay for auto insurance with Pay-As-You-Go insurance. As connected to pay-as-you-go protection or utilization based protection (UBI), this innovation could help shape a more profound association. UBI is a new idea that translates the number of miles you drive and alters your rate as the need arises. These mileage discount programs base the auto insurance premiums on miles driven—so if you drive less, you save more. In principle, this kind of protection urges individuals to drive less and secure more for bringing down rates, leverage for both the safety net provider and the policyholder. Blockchain could upgrade UBI items by putting away gathered information from vehicle sensors in the blockchain, consequently bringing down expenses for drivers and furnishing insurance agencies with perplexing, ensured customer information. The technological supremacy and security of blockchain and the insurance industry together with the safer driving makes this innovation globally unique. The outcome of this is disruption of the motor insurance philosophy.

National General Insurance and Onstar are the first to institute a telematics technology-driven Pay-As-You-Go insurance discount program in the U.S. Pay-as-you-go protection could be the response to finding the perfect measure of scope for the way of life, with secure blockchain innovation serving to enhance the procedure boundlessly.