It is common for considerations of the future social implications of decentralized technology to present freshly differentiated images of somewhat superior methodologies, which may be radically different from those of today. However, the decentralized registration of centrally controlled operations could, on the contrary, constitute a marked deterioration in the potential of technology and development prospects. Without an equivalent prior structural change, the introduction of decentralized technologies in established industries wishing to strengthen rather than improve service offerings should give us all great concerns.
In a well-known and fact-based business school anecdote, one often repeats the case of one of the first life insurance claims. Shortly after this type of policy became available, a life insurance policyholder actually died while his high payout protection was applicable. When the family of the deceased tried to make a claim for compensation, the insurer wrote a new definition of how the company calculated "one year" in order to avoid [with success] the regulation.
Commendable industrial ingenuity or defenseless profit most likely depends on being relayed to a strategy or ethics conference. However, keeping this story in mind, we turn now to the introduction of blockchain technologies in the insurance industries:
ORLANDO, Florida – Blockchain technology has a future in workplace compensation transactions, as it could potentially improve communication and efficiency across the industry, a presenter told participants at the annual symposium. National Disaster Compensation Board Issues Blockchain is a decentralized peer-to-peer network that provides insurers and stakeholders with a means to "produce, store, manage and share data as a secure record of transactions" said Paul Meeusen, Head of Distributed Accounting Technology and Head of Financial Reinsurance at Swiss Re and CEO of B3i.
The Blockchain consists of a large distributed book, a consensus providing a "one-time" information, cryptography for authentic and secure transactions, and smart contracts, which are automatically executed under predefined conditions, Meeusen said. In a traditional insurance system, there is an inefficient flow of information between policyholders, insurers, reinsurers and financial markets, he said. Mr. Meeusen explained how technology can increase efficiency rather than collecting and examining data in separate systems.
"We work together, but we keep control of our data," he said.
For worker compensation, the blockchain can offer stakeholders the opportunity to share personal and medical information, providing a secure place to store and access data. The technology would also check the compilation's coverage across the blockchain platform, he said. Blockchain also allows real-time messaging and confidential information sharing across the industry, he added. "There is certainly an efficiency component here," Meeusen said. "On May 19, 2018, Louise Esola on business insurance
The blockchain can indeed offer a transparent, decentralized and immutable record of digital data entries. Possible extensions using automatically intelligent or complex "intelligent contract" type events are also numerous. This is without a doubt. However, the quality of the content is perhaps often overlooked or simply understood in the excitement of the technology.
Replicating existing methodologies in new ways may mean giving up opportunities for improvement. In other words, whether an insurance policy is centralized or registered using decentralized technologies, this says nothing about its practical implementation. The same issuing company has formulated and applied the conditions.
The caveats, clauses, loopholes and conditions of many insurance policies prohibiting payments to holders are too numerous to list here in detail. Suffice it to say that for many, they are a part of the accepted and recognizable insurance process. Unconditionally numbering the terms and conditions of the insurance company with complexities that the individual policyholders do not fully understand only confers benefits to the issuing company.
Rather than a pleasant exchange, clarification or justification in case of lack of understanding, the agreement of the numerically immutable and time-stamped holder with such a document is forever locked. Although the transparency of the documents themselves can be established, understanding and respect for the policy remain largely one-way. The use of immutable data is only beneficial if there is sufficient knowledge of the meaning or implications of that data. A complicated and one-sided policy remains the same, whether in the blockchain or outside of it.
The presence and the very survival of extremely profitable insurance giants should allude to the structure of the company. In the end, as in a casino, the calculations and measurements of society are superior to our understanding of probability.
Like a round at the blackjack table, a player's chance of winning or his participation risk exposure himself outweighs what is essentially a guaranteed loss when he is measured on a sufficient time scale. The house always wins. That's why there is the house [well decorated and richly furnished] itself. In addition to the investment strategies and the multiplicity of financial activities, the main coverage of insurance exists because the company bets that we, the subscribers, are wrong.
For any business, it is untenable to shell out more than what you receive. As a result, the range of choice in insurance is available and continues to be, as their purchase, over a long enough period, yields more to the issuing company than it costs the price.
It is not about marginalizing a host of benefits, protections and potential security provided by insurance offers. As in the case of automobile accidents, for example, in a cost-benefit analysis, it may be prudent to exercise restraint on experienced and centralized monsters, which is very time constraints of the alternative. This is simply to say that in all insurance offers, the house [an insurance company] exists because it remains profitable.
When blockchain technologies are supposed to be a panacea for the development and future of the industry, perhaps we should all take a step back and ask ourselves if we really understand the policies themselves before we get excited about their registration immutable.