Transforming insurance: the role of smart contracts in shaping the future

Smart contracts, powered by blockchain technology, entail agreement terms written directly into code. They autonomously enact and uphold agreements upon meeting predetermined conditions, without intermediaries needing to be involved. The use of blockchain technology and self-executing smart contracts in the insurance sector emerges as a driver for significant transformation - smart contracts are enabling a future wherein claim handling, policy administration and fraud prevention are automated. Blockchains and smart contracts hold the promise of simplifying and automating the claims management process. By utilising a decentralized ledger accessible to insurers, policyholders and third-party service providers, real-time updates and transparency can be facilitated so minimizing manual reconciliation and communication efforts. Furthermore, smart contracts boost efficiency by automating claim registration, documentation submission and evaluation. By setting conditions beforehand and trigge…