A subsidiary company of Russia's largest bank has recently launched a pilot version of a new unified Blockchain-based database of insurance histories that will help to combat fraud in the insurance industry.
According to reports on the Russian service to combat fraud in insurance industry, about 10% of the whole amount of all insurance payments is sent to insurance fraudsters, totalling more than $788 million annually. While in some regions, the number of insurance payments made to fraudsters reached 25%.
Vadim Yegorov, CIO at "Sberbank of Insurance” said:
"To eliminate some of these problems [we must] implement Blockchain technology, which helps to create an environment of trust between people, who have a lack of trust to each other [now]."
The implementation of Blockchain in this new unified insurance database should also help to reduce costs, heighten security, minimize the risk of insured events and provide automated insurance services.
Derick Smith, CEO at Chainreactor, has recently noted to CoinIdol.com that blockchain technology also allows consumers to achieve insurance policies safer and faster, while financial contract data will become more transparent and with lower premium prices.
The new project of "Sberbank of Insurance" is now in a pilot and is planned to be released for commercial operation in 2017.