While there has been much talk of the potential for blockchain technology in the insurance space, there have been minimal implementations. The Institute’s RiskBlock alliance and LIMRA have announced a promising use case in the life insurance and annuity sector.
This use case addresses the issue that many life insurance companies were not consulting the Social Security Death Master File to pay life insurance claims, while they were consulting the Death Master Files to terminate annuity payments. Multiple state insurance commissioners sued multiple life insurance insurance companies, with the end result that more than 20 states now require life insurance companies to cross-reference the Social Security Death Master File with their in-force business to ensure that eligible beneficiaries receive the life insurance death benefit when their loved ones die.
The application, Mortality Monitor, will leverage Social Security data, other data sources and policyholder records to provide real-time notification to members of the death of life insurance and annuity policyholders. This blockchain-powered solution will improve claims processing, reduce fraud and increase customer satisfaction. See the full press release and learn more about the RiskBlock Alliance: The Institutes RiskBlock™ Alliance Launches Canopy, the Risk Management and Insurance Industry’s First Blockchain Platform.
In April, Marsh announced a collaboration effort to develop a commercial blockchain solution for proof of insurance. This is another area where the use of blockchain technology could create increased efficiency and better results for consumers as Marsh Develops Commercial Blockchain Solution for Proof of Insurance.
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