How Does Blockchain Tech Can Reshape the Health Insurance Industry?August 22, 2018
Blockchain technology is considered to change health insurance. But what is blockchain and what are the possible downsides and upsides of the innovation?
The blockchain is a new data structure introduced to the world in the year 2009. It’s a digital ledger of transactions among a public network of computers. It enables every participant through cryptography and complex algorithms to manage their data, without the necessity for a central authority.
The key attributes of the blockchain tech involve:
- Network public accountability
- No central point of control
- Strong data integrity
- Steady accessibility
Blockchain doesn’t just offer insurers a safe outlet to keep personalized health information and payment plans. It also offers policyholders with “always available” access to records.
The Advent of Blockchain in the Healthcare
The healthcare sector is noticing a big advantage in adopting blockchain to its corporations. However, to maximize its usage, most should participate in the public network. Existing insurers teaming up with blockchain-linked businesses are already noticing innovations in their area of influence.
Streamlining Health Coverage via Better Data Management
Blockchain logs permanently between its participants. As a result, it provides a level of transparency not accessible in the existing paradigm of the insurance industry. Often, there are various levels of middlemen throughout the lifecycle of the health insurance policy. Data is shared between different stakeholders, yet it takes forever for the cycle to go from one end to another. The procedure is riddled with inefficiencies and blockchain technology could help with that.
Applying automation to those blockchain-developed programs, patients can create contractual agreements with pharmaceutical companies, physicians, and hospitals. Completed transactions between the parties could take up a block which is connected to the chain.
For instance, for XinFin’s TradeFinex is known as an enterprise-grade blockchain network for the progress of the infrastructure as Asset Class. It enables crowdfunding through asset tokenization. Tradefinex strives to lessen global infrastructure deficit by allowing the participation of retail investors. It will also boost efficiency by work stream automation.
With blockchain technology, every participant can now load only the information which is important to their shared contract. That way, if a transaction is performed, everybody involved can see the history, status, and process of what is being authorized.
How Health Insurers Will Benefit from Blockchain Technology?
Nowadays, a handful of health insurance corporations are working on projects incorporating blockchain technology to boost their market share and growth. Since it is a relatively new development, insurers are paying further attention to the long-term advantages – while keeping focused on the short-term vigilance.
There are also excellent educational resources accessible to anybody striving to stay ahead of the curve. Nonetheless, the days of utilizing bootstrapping methods and accelerator programs to increase the business are warning.
As an alternative, insurers can now work along with digital transformation platforms to create and develop blockchain techs to target particular needs through a one-size-fits-all approach. However, targeting the proper investments includes establishing an experienced team which understands what to search for in the clutter of merging market developments and products.