My Blog About Blockchain: INSCOIN - First Blockchain-Based Insurance Company

Insurance is one of the oldest industries, and can be seen as part of the growth of modern business that has come to define the world-wide society. While the insurance in the form we will recognize today begins with the first insurance contract in 1347, methods for transferring and distributing risks in the monetary economy have been observed in China in the third millennium BC. One thing that has defined the insurance sector for thousands of years is its ability to adapt its practices to fit the changing technological landscape. From contracts written on parchment to websites and large data, the industry has changed rapidly.

Blockchain is the latest technology game changer to include images, and many predict that distributed ledgers can have profound effects on how insurance companies can operate. One important issue that seems to be designed by blockchain technology is the underlying principle of 'good faith' in insurance contracts. This principle states that any party entering into an insurance contract has a legal obligation to act with a standard of "greater honesty than is usually required in most commercial contracts". This means that insurance companies are asked to believe that they are told the truth by people who want to take out insurance. This is different from other contracts, which are usually based on the principle of 'let buyers take care',

Applying a blockchain to this problem means that insurance contracts and consumer personal data can be stored on a distributed ledger, with consumers controlling who has access. The data remains on the user's personal device and this can eliminate the need for brokers and other intermediaries that appear as mediators between insurance companies and consumers. Blockchain not only offers the promise of cost reduction and efficiency, but also can enable revenue growth, because insurance companies attract new business through high quality services.

Blockchain technology can help the wholesale insurance sector fulfill its role in supporting the global economy more effectively. Just as blockchain is being pursued as a force for positive change in other areas of society - from identification to refugees to better public services - it can also help wholesale insurance to carry out its responsibilities for the common good.

The KNOX Project will be the first insurance company to combine the real world with the digital world using Blockchain technology, creating the most efficient and sophisticated structure in the sector, to find solutions to certification and anti-counterfeit insurance policies. With smart contracts, the spread of fake insurance policies is avoided because it is the same system that issues them upon receipt of payment. With smart contracts, the company will not have any delay in collecting credits, since the policy is issued only after receiving payment. This factor aims to improve the company's management significantly. With a smart contract in the event of an accident, the actual judge who will decide whether or not to pay them is no longer a company, which can have opportunistic behavior, but the blockchain system, in absolutely no interest in human opinion, will decide whether this accident complies with the terms of the policy. This benefit will be the most important because it will increase the company's transparency to customers.

With smart contracts, the spread of fake insurance policies is avoided because it is the same system that issues them upon receipt of payment. With a smart contract the company will not have any delay in the collection of credit, since the policy is issued only after receiving payment. This factor aims to improve the company's management significantly.

With smart contracts in the event of an accident, real judges who will decide whether or not to pay them are no longer a company, which could have opportunistic behavior, but a blockchain system that, in absolutely no interest in human opinion, will decide whether the accident is in accordance with provisions in the policy. This benefit will be the most important because it will increase the company's transparency to customers.