When the American Property Casualty Insurance Association (APCIA) and FICO conducted a survey of 143 U.S. insurance companies, 48% of insurance companies revealed that fraud accounted for 5-10% of their claim costs. According to the US Federal Bureau of Investigation (FBI), the United States loses more than 40 billion dollars each year due to insurance fraud. However, there is now some good news; insurance companies can use blockchain technology to refine the claims process, thereby increasing efficiency by up to 3 times, and reduce costs by up to 5 times.
As a distributed public ledger, blockchain technology can be used to securely store transactions and record data. Insurance companies can use blockchain technology to improve the way they do business. With years of experience in the traditional insurance industry, Blockchain Insurance Global (BIG) has become the forerunner that will empower the insurance industry with blockchain technology.
The BIG insurance platform is based on a combination of blockchain, artificial intelligence, and IoT, and is the world's leading customizable and extendable insurance ecosystem. The AURA consensus algorithm with the best public efficiency balance and the POS+DPOS bimodal consensus model are both used to generate new blocks. The platform takes new technology as its core and transforms the traditional insurance process mechanism - digitizing insurance products and modernizing insurance processes to improve efficiency and productivity, thereby generating value for users and participants in the BIG platform.
On the BIG insurance platform, policyholders, platform managers, third-party actuaries, and users will interact organically under transparent rules to empower the insurance industry together. The BIG platform will use IoT technology, blockchain, and artificial intelligence to establish a smart consumer electronics insurance with automatic pricing and automatic claims, and build an open P2P community group for mutual assistance and to reduce insurance premiums.
BIG uses artificial intelligence and big data analysis to calculate premiums more accurately and reduce claims fraud. Smart contracts will automatically execute and disburse claim settlements if the underlying conditions are met, which will reduce operating costs and in turn, reduce the insurance premiums. Through the rewards mechanism of the P2P community group, moral hazard and fraud risk can also be reduced, and the resulting gains can then be shared amongst the community.
After effective anti-fraud analysis, IoT data is entered into the Ethereum blockchain through the Oracle channel. The vast majority of claims settlements are completed within a few minutes through BIG's automatic claims system (smart contracts). For events that cannot be automatically settled, a manual claims process will be initiated.
Emerging technologies represented by the Internet, big data, blockchain, and artificial intelligence are changing traditional economic models. The insurance industry is also facing a comprehensive and profound change under the wave of technology. Technology has not only changed the business model of the insurance industry, but is also promoting faster and more efficient capital allocation. It has reconstructed the many sectors of insurance, along with profound changes in the economy and society. The BIG platform will make full use of cutting-edge technologies such as blockchain, artificial intelligence, and cloud computing to lay a solid foundation for the development of the insurance industry.