Blockchain is becoming more and more widespread with its aggressive adoption curve. According to Deloitte, 26 000 Blockchain-based projects were launched on GitHub in 2016, and the technology continues to increase its appeal in the financial and technology fields.
The latest industry to adopt Blockchain was insurance. Recently, the Stratumn startup teamed up with 14 French insurers to develop an industry-wide platform uniting insurance companies and facilitating their collaboration. The system will come especially handy since it will help comply with the Hamon Law, new French regulation on customer mobility, which requires the insurers to help the clients to make an easy transfer to another provider during the first year should the client wish to do so. The platform was also supported by the “Big Four” Deloitte.
Data protection is everything
In 2018 the new EU law on personal data protection, General Data Protection Regulation (GDPR), will come into effect. The companies negligent with their clients’ data will be liable to hefty fines under the law. The Blockchain platform, however, will do what no other technology can and provide an extremely secure storage for customer data.
The Stratumn platform uses the Proof-of-Process (PoP) technology to ensure data protection. The technology uses digital signatures and integrates with existing infrastructure to securely record the participant’s actions in each step in a process, which allows to form a cryptographic audit trail. PoP allows to connect each of these steps with a legally binding document. So, given the increasing demand for security Blockchain is just what the insurance sector needs to bring about a substantial change.
Adam Perlow Founder and CEO of Zen Protocol, said:
“If the insurer sets some money in a smart contract, and the contract pays out based on the occurrence of an event as determined by an objective actuary/oracle, then there is no need for novel incentive schemes, the insurer simply cannot avoid the payout. In the long run, as one insurance company uses smart contracts to gain the public trust, others will be forced to follow suit”.