The Research Center on Technologies, Innovation and Financial Services (CeTIF) - Catholic University and Reply, together with a group of giant financial banking institutions including Banca Mediolanum, Popolare di Sondrio and Ubi, as well as the popular Italian insurance companies such as Mediolanum Assicurazioni, Cargeas Assicurazioni, Nobis Filo Diretto and Reale Mutua, have finally decided to work together on a solution for the issuance of smart insurance policies based on blockchain and smart contract technologies.
The groundbreaking project is being developed within the Insurance Blockchain Sandbox, a controlled-regime environment that enables all verified users to experiment with products and services in a more secure environment and under the command of a Scientific Committee which is made up of Ivass, CeTIF and the advocates of individual applications.
Italy as a country is fond of using futuristic technologies in various industries such as insurance, tourism and culture, finance, agriculture, energy, transport and logistics, art and many others. This of course, shows a bright future of this embryonic technology, and is also a sign that its fruits are now beginning to ripen. The distributed ledger technology has the potential to trace and track goods in the supply chain and also go-ahead to record all the transactions carried out in the process.
When blockchain tech is used in the insurance industry, it will help to lessen the administrative costs via the automated proof of claims/payment info from all the third parties. And this will trigger firms to see beyond the claims transactions that were initially recorded on the network for efficient and easy reference. The technology will also guarantee that there is rebalancing experiences against certain risks.
Blockchain tech will enable firms to trounce the existing challenges and generate more transparent set-ups erected on trust, solidity and stability. However, the insurance sector will remain with some hindrances to overcome, but the blockchain’s potential to offer full accountability, transparency and concrete security will greatly enable insurers save resources including time and money, and further mend client satisfaction.