Insurance companies have been adopting crypto technology for more safety and cost reduction. Technology brings benefits to the industry, reducing bureaucracy and providing more transparency to the business. The benefits happen for both sides because the clients have the sinister paid with more agility.
In the Brazilian market, Sura has implemented crypto technology in its business and has been obtaining excellent results. Thus, the financial default fell by more than 20% while document reissue costs fell by 32%. The company adopted the Ethereum platform and created smart contracts to register insurance contracts. Therefore, the contracts became public and immutable, increasing the reliability in the company.
The 88i also adopted crypto technology in its mobile phone insurance business, personal accident, and medical expenses. The platforms used were NEM and RSK, allowing the access of the information in real time by the smartphone. For the CEO of 88i, the tendency is that the cryptocurrencies are adopted to make the payment of claims immediately.
Crypto technology in the insurance market
The insurance industry is one of those who has been adopting crypto technology with greater enthusiasm. IRB Brasil RE, one of the largest reinsurers in the world, has also been conducting studies on technology. This is a trend that has been strengthening for the entire financial sector, especially banks. However, for the tech-savvy public, the perception will only be that everything suddenly became simpler and less bureaucratic.
The Brazilian portal Valor Econômico published a report on the adoption of crypto technology by insurance companies on March 29.