Often, opinions about the future social consequences of decentralized technology represent freshly differentiated images of somehow the highest methodologies that can be radically different from today’s. However, a decentralized record of centrally controlled operations can be a marked degradation of both technology capacity and development prospects. Without equivalent previous structural changes, the introduction of decentralized technologies into established industries that want to reinforce rather than improve the supply of services should be of great concern.
A well-known fact-based business school anecdote often repeats the case with one of the first life insurance requirements. Shortly after this type of policy became available, the owner of the life insurance policy did die during the action of his high-paying protection. When the family of the deceased tried to claim, the insurer wrote a new definition of how their company calculated “one year” to [successfully] avoid settlement.
Talking about laudable industrial ingenuity or defenseless profits will likely depend on whether it was conveyed in a lecture on strategy or ethics. However, with this in mind, we now turn to the introduction of blockchain technology in the insurance industry:
“Orlando, Florida – Blockchain technology has a future in employee compensation operations because the technology has the potential to improve communication and efficiency across the industry,” said the host of the annual National Compensation Insurance Council symposium. on Friday. Blockchain is a decentralized peer-to-peer network that gives insurers and stakeholders a way to “generate, store, manage and share data as secure transaction records,” said Paul Meissen, head of distributed book technology and director of financial reinsurance at Swiss Re and CEO of B3i. .
The “blockchain” consists of a distributed registry, a consensus that provides a “single version” of information, cryptography for secure and genuine transactions and smart contracts that are automatically executed under predetermined conditions, Mr Meissen said. In a traditional insurance system, there is an inefficient flow of information from the insurer to the insurer to the reinsurer in the capital market, he said. Mr Meeusen explained how technology works to improve efficiency rather than to collect and study data in individual systems.
“We work together, but we keep control of our data,” he said.
For compensation, employees blockchain can give stakeholders the opportunity to share personal and medical information, providing a secure place to store and access data. The technology will also test the coverage of computers across the blockchain platform, he said. Blockchain also allows for real-time messaging and confidential information sharing across the industry, he added. “There’s definitely an efficiency component here,” Mr Meisen said.
Blockchain can indeed offer a transparent, decentralized and unchanging record of digital data. Possible extensions that use automatically executed or intricately initiated “smart contract” events are also numerous. This is without a doubt. Although quality content may be something often either ignored or simply incorporated into the excitement of technology.
Repeating existing methodologies with new means may mean abandoning the possibility of improvement. In other words, regardless of whether the insurance policy is kept centrally by the issuing company or registered using decentralized technology, it says nothing about its practical implementation. The same issuing company has formulated and complies with the conditions.
The warnings, regulations, loopholes and conditions of many insurance policies that prohibit payments to owners are too many to list here in detail. Suffice it to say that for many they are a known part of the insurance process. Now the constant digitization of the terms of the insurance company with difficulties that may not be fully understood by individual owners of such policies, gives the issuing company only advantages.
As an operative exchange, explanation or justification of the misunderstanding here is permanently blocked the owner’s agreement with digital constancy and time stamp with such a document. While the transparency of the documents themselves can be established, the understanding and respect for the policy remains largely one-sided. The use of immutable records is beneficial only if sufficient knowledge of the value or implications of those records is available. Twisted and one-sided policies remain just that, whether blockchain or out of it.
The very presence and survival of extremely lucrative insurance giants should hint at the structure of the business. Ultimately, as in a casino, the company’s calculations and performance exceed our understanding of probability.
Like a round at the blackjack table, a player’s chances of making a profit or enjoying the risk of participating outweigh what is essentially a guaranteed loss when measured in a sufficient time scale. The house always wins. That’s why it exists [well decorated and ornately furnished] the house itself. In addition to investment strategies, as well as many financial activities, in essence, insurance coverage exists, because the house is betting that we, the insurers, are wrong.
It is impossible to pay more for any business than you get. Thus, the range of insurance choices has been and remains affordable, as purchasing them over a sufficiently long time brings the issuing company more than it costs for them when paying.
This is not in order to marginalize the many potential benefits, protections and security provided by insurance offers. As with car accidents, for example, in cost-benefit analysis respect for experienced centralized hippos to address them can be just reasonable and worth the cost, especially given the possible needs of the time alternative. It’s just to argue that in all insurance offers, home [an insurance company] exists because it remains profitable.
If blockchain technology is seen as a panacea for the development and future of the industry, perhaps we should all step back first and ask ourselves if we really understand the policies themselves before getting too carried away with their unchanging record.