Let me put it in terms that you understand.
You remember the Steem Byteball Airdrop craze recently? I hope you've already signed up for Byteball and connected it to your steem account if you qualify for it.
One of the feature of Byteball is easily accessible and "codable" insurance smart contract. Just by following a simple Medium.com article, any person with a Byteball wallet and some KBytes can code a smart contract that "gambles" against certain events. For example, a flight delay.
Insurance is literally a gamble against inconvenience or disaster. So by using byteball you can insure yourself against a flight delay by creating a smart contract where if your flight is delayed, you'll be paid a sum of set amount of bytes.
And its all doable from a smartphone app too. I'll link the instruction if anyone wants to try it.
In conclusion, if any person can essentially created their own insurance plan, what will happen to big insurance companies?
Blockchain won't be "applied" to the insurance industry, it will disrupt it to the point of redefining what insurance is.
Blockchain technology has successfully attracted people's attention around the world since it promises transparency, trust, virtually incorruptible, cut the time taken for processing the transaction, and others benefit.
Blockchain technology leads us to 'the new era for trust', and already applied in various sector such as (government, industries and other business). It uses to support: the payment processing and money transfers; monitor supply chains; retail loyalty rewards programs; digital IDs; data sharing; copyright and royalty protection; digital voting; real estate, land, and auto title transfers; food safety monitoring; tax regulation and compliance; insurance; immutable data backup; and others purposes.
Regarding to the question on the subject of this post, I will say that Blockchain technology, of course will be very good to applied on the sector of insurance companies as well!
It is well known that there is a lack of trust, high costs and inefficiency in the insurance industry which make people avoids to carry the insurance. For example, in my country, Indonesia, people avoid to carry the natural disaster insurance or any other kind of insurances event though they experience of it.
But, the present of blockchain technology will be a good opportunity for the insurance industry to build and improve the trust of consumers since it is not only providing transparency, but also enhance efficiencies and effectivity. It also a good opportunity in improving claims processing through smart contracts. Another excellent aspect to consider why the insurance industry should adopt and applied the blockchain technology is because it can detect and prevent freud.
Al, Bandung, 20 September 2018
With insurance policy records stored on the blockchain, insurance agents can make smart contracts for each policy with payment details, accounts to be paid for and conditions preconditions for the implementation of each smart contract. In the case of a claim, Insurance researchers can verify claims and record their findings on the blockchain, depending on where the smart contract will be executed. This will not only streamline the industrial system by reducing time and energy if needed manually in completing the process but also reduces the waiting time to receive the insurance claim.
It actually has existed and is proven to be very effective. There are a lot of tokens out there using blockchain technology to revolutionize the insurance industry.
It will be very much appropriate to feature the coin that poured a lot of blessings to the community - BYTEBALL.
The biggest airdrop so far I've seen in Steemit where thousands and millions of dollars worth of tokens were distributed to Steemians.
Byteball has been successful with their insurance features and has attracted lots of investors on it. Though insurance needs some risk, it will help you in times of need.
One type of insurance they assure it was beneficial was the Flight Delay Insurance where individuals need not to worry anymore if their flight was delayed or cancelled. They have an assured insurance that will help them.
An example presented was you avail a certain insurance at 0.1 GB given the flight details. If the flight is delayed for more than 30 minutes or cancelled, an insured additional 0.9 GB will be given to the individual.
You could have one of those pods that plug into the OBD connector and record data as you drive. You could then use the data to determine rates for customers on if they drive safe or not. It could also be data used in the event of a crash to see how long the brakes were applied if at all before the inpact. You could also offer voluntary breathalizers to assure you never get a DWI.