U.S.-based insurance company State Farm is testing a blockchain-based solution to speed up the subrogation process for auto claims, according to an announcement published Dec. 10.State Farm is a large group of insurance and financial services firms that provides auto insurance in the U.S. The organization was ranked 38th on the 2018 Fortune 500 list of companies.
Per the company's website, it processes 38,300 claims per day and has nearly 519,000 accounts in mutual funds.
State Farm is working on blockchain-based solution to speed up the subrogation processes in the insurance industry.
Subrogation is a legal right held by most insurance carriers to legally pursue a third party that caused an insurance loss to the insured, and is usually the last part of an insurance claims process.
State Farm is reportedly testing a blockchain solution collaboratively with another insurer, to see whether it can reduce the time needed to complete the subrogation process by automatically compiling all subrogation payment amounts.
Insurance companies globally have been integrating blockchain technology into their operations.
Last month, Japanese insurance company Sompo partnered with pan-African digital payment platform BTC Africa, also known as BitPesa.
In September, major insurance firm the People's Insurance Company of China partnered with blockchain platform VeChain and global quality assurance and risk management company DNV GL to make their business more time and cost efficient.
The partnership also aims improve fraud prevention, Know Your Customer compliance, as well as the claims experience.
Market research firm MarketsandMarkets predicted that blockchain in insurance market will grow to $1.4 billion by the end of 2023, at a compound annual growth rate of 84.9 percent.
State Farm Tests Blockchain Solution to Speed Up Auto Insurance Claims
gepubliceerd op Dec 10, 2018
by Cointele | gepubliceerd op Coinage
Coinage
Vermeld in dit artikel
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.