Blockchain for Insurance Claims Management
Masooda M. Modak, Kalyani Nikhilesh Pampattiwar, Namrata Patel, Neelam Sharma · Apple Academic Press eBooks · 2025
Insurance is a substantial market where an amazingly high percentage of funds is lost to fraud and inefficiency. Despite the Indian insurance market’s size, growth, and importance, it suffers from ancient systems and broken processes that are opportunistically exploited by all parties involved. The insurance claim process is a series of manual steps and the data required for it might be stored in silos that do not communicate with each other. Fraud is a potential issue. For the insurer, it might be a costly process because of manual administration, reconciliations, and settling disputes. For the policyholder, claiming in times of need or distress is an inconvenience. These issues drive us to propose a blockchain-based insurance claims management solution. Blockchain technology may offer a practical solution for managing the claims process while ensuring integrity, accountability, and non-repudiation. This chapter aims to focus on the current process of claims management and its drawbacks along with a blockchain solution for it. This chapter will discuss how consensus methods, smart contracts, and machine learning algorithms can be used to simplify the claims process, protect claim transactions, and prevent fraud. Furthermore, this chapter also discusses a blockchain-based IoT approach in the insurance domain along with recent advances in blockchain.