HashCash Consultants is helping insurance firms globally to streamline their claims processing operations by replacing the manual procedures with blockchain-backed smart contracts. The USA based leading blockchain development company is well-known for its smart contract development services. The company leverages the same to aid its global network of partner and client enterprises across industries to automate respective legacy operations and make it more efficient and reliable.
Speaking about the smart contract development services, Raj Chowdhury, CEO of HashCash Consultants mentioned, “The legacy architecture of insurance claims processing is beset with multiple hurdles that make it complex and time-consuming. Luckily the advent of blockchain technology has brought scalable solutions to mitigate the pain points and we aim to extend our help to the industry insiders with the same, notably our smart contract development services.”
The Issues with Insurance Claims Processing:
Processing of claims is one of the most extensive and crucial operations of the insurance industry, which is complex, time-taking, and expensive as well. Each year the insurance sector collectively spends tens and millions of dollars to process claims. There is a lack of transparency in the overall process and involvement of too many third-party intermediaries. It leads to fraudulent claims which incur heavy losses worth millions of dollars.
The claims go past multiple intermediaries. The path in which the transaction proceeds is opaque and untraceable. Every stage is made complicated with manual verification, which is susceptible to inaccuracy. In most cases, claims filing happens manually, which raises the chance for errors. Due to the complexity of the process, claims take days and even weeks to go through.
HashCash’s blockchain-based solutions and execution of claims through smart contracts address all the issues and streamline the legacy architecture of the insurance sector.
HashCash’s Smart Contract Solution to Claims Processing:
The implementation of smart contracts improves the overall process of claims in multiple ways. It enables accuracy checks and establishes the payout based on specific criteria that take the type of policy held by an individual/organization into consideration. HashCash smart contract-based insurance claims processing follows the steps below for execution:
- Formation of a pre-defined contract the contents or clauses of which are agreed upon by the parties involved
- Being backed by blockchain clauses within the smart contract are immutable and cannot be altered without the knowledge of the involved parties
- The filing of the claim triggers the execution of insurance policy
- All formalities involving claims processing takes place over the blockchain platform (HC Net) over which the smart contract is developed and eventually executed
- Once all the pre-agreed terms are met, the insurance policy gets executed automatically
- The policy claimer gets instant payout in his/her account instantly
The entire process is recorded on a shared blockchain platform for either of the parties to access at any time. The inclusion of HashCash’s smart contract services has helped global insurance companies to address fraudulent claims, reduce filing error, and processing time, along with processing cost among multiple other benefits.