The advantages of blockchain | Insurance coverage Enterprise America
Cyber criminals had an undeniable advantage this year. With the relentless waves of ransomware attacks, privacy is paramount for the insurance industry.
Enter LifeHash – a company that uses technology to improve the claims lifecycle. Founded in 2021, CEO Stuart Menzies and CTO Gary McKee created a platform using blockchain technology that offers both customers and insurers a seamless and secure method of real-time claims processing.
Understanding blockchain technology is alien to many, but LifeHash is taking that burden off the industry and helping integrate blockchain into their business model using their live claims app.
Protecting the data of insured persons is much easier with the introduction of blockchain. The LifeHash app not only offers additional security, but also speeds up the claims process, as insured persons can immediately document as much information as possible in the event of a claim.
“The current claims process is incredibly time-consuming,” said Menzies. “Our app is fast and secure.”
LifeHash’s solution collects important data at an early stage, such as collision information from a mobile device or proof of ownership, links them together and stores them securely and transparently via public blockchain networks. These records are fully verifiable and can be used to review steps in the insurance process.
“There are two types of blockchains,” Menzies explained. “There is the public side, where everyone can participate in the verification process, then there is the private side, where IT products are centralized and the blockchain can be switched on and off at will.”
The strength of a public solution is that it can take advantage of the immense security and transparency of large blockchain networks like Bitcoin. These networks have proven themselves and are likely to last for decades. Private networks, on the other hand, are heavily dependent on central control and in this respect do not differ significantly from a regular database.
What is interesting about public blockchain technology, and how LifeHash implements it in their platform, is that the company cannot see the data that customers send to insurance companies because of the double encryption.
“We are essentially using blockchain technology to facilitate the exchange of information. We receive an encrypted file and encrypt it again so that the end user can access the data and store it securely. We can improve the verification of sensitive data through intelligent solutions that blockchain technology enables, ”said Menzies. “We are essentially trying to improve data processing and data protection.”
McKee added, “One of the great things about blockchain is encryption, and we will be using blockchain-based encryption to store assets, images and video files so that only the customer and the insurer can access this information.
“I firmly believe in the immutability of blockchain and combining it with insurance claims and the data collected during this process is a breeze. We are improving data protection for the user and making the claims process as easy as possible. “
LifeHash’s app improves efficiency when collecting testimonies, proof of ownership, or periodic inspections, and digitally fills the gaps in the insurance claims process with blockchain as it solidifies a single point of truth for all information.
“When information is gathered in a cohesive database, it is easier for insurers to prove it,” said Menzies. “The advantage of blockchain for insurers is that it is definitive. The photo uploaded to LifeHash can be verified by our solutions to confirm that it is from the customer who is bound by the policy and any other information submitted through the app. Structuring the claims process with such a solution also reduces the risk of fraud. ”
Blockchain provides the tools to enable the security of decentralized data. “We combined the best of a public blockchain with privatized assets so you can easily verify that information is legitimate,” added McKee.
“I still think we’re just starting out with the blockchain rollout,” noted McKee. “And even if the technology has overtaken many others in terms of development speed, if we take a step back, we can use the existing blockchain technology efficiently, cheaply and without the other problems of legacy platforms.”
When insurance companies invest in a live claims app, they are essentially going to insure themselves, Menzies says. The transparent and verifiable data that can be provided with a blockchain solution provide a highly reliable and objective way to store information and give both insurers and policyholders a way of accessing it.
“We leverage every piece of blockchain technology fundamentally in the insurance claims process,” said McKee.
In an industry that is heavily influenced by legacy processing, blockchain mitigates cybersecurity risks and offers customers a more secure way to file a claim.
The innovative, customizable app from LifeHash ensures a seamless exchange of information between insurer and policyholder. Insurance companies can integrate their own APIs into the platform so that companies can easily take the first step in developing claims handling and data security.
More information is available at www.lifehash.com.
Co-founders Stuart Menzies and Gary McKee worked together to create a platform that uses blockchain technology to enable both efficiency and security. Menzies, CEO, has a solid background in military and protection services. McKee, CTO has over seven years of experience working with DigiByte Global Blockchain as a full-stack engineer.