The insurance industry is one of the most traditional, bureaucratic, and walled sectors. Now, it is awakening from its slumber and exploring new technology for achieving efficiency. Increased customer distrust in centralized financial services, resulting in high underinsurance rates, is driving its reluctant yet solid interest in innovations. Especially, key players are exploring applications and smart contract solutions with blockchain technology in insurance.
Insurance companies, driven by both curiosity and fear, have started to hire blockchain development companies to assist them with the implementation of blockchain solutions. Curiosity stems from blockchain as it promises to reduce the overall time and transaction costs while increasing operational efficiency. However, insurers also fear this innovation, it can open up new cyber-attack vulnerabilities.