Insurance companies thrive on data. In line with other technologies such as the internet of things (IoT) and artificial intelligence (AI), blockchain can collect a range of usable data. For example, if the insured wears a sports watch and agrees to share data - metrics such as heart rate, oxygen levels and sleep times, a lower premium may be incurred. Blockchain stores all data collected by an IoT device. This is then read by the AI and helps your company make better decisions on insurance premiums.
When embracing blockchain, it's best to start small. Ask the team to look at areas where they can help in the short term. For example, you can start by issuing policies for high-value items that are traditionally too risky to be insured. The policy will cover loss or damage from many risks, including water damage, fire and theft.
As technology improves, you can continue to offer policies for cars. The smart contract will be equivalent to standard comprehensive insurance, but with reduced premiums for safe driving. These habits are displayed by IoT devices that monitor everything from brake speeds to fuel levels. Such data can also help lower premiums for maintenance and upkeep of insured products.