Often reflections on the future social implications of decentralized technology present freshly differentiated images of some excellent methodologies that may be radically different from modern ones. Yet a decentralized record of centrally managed operations may instead be a marked degradation of both technology potential and development prospects. Without equivalent previous structural changes, the introduction of decentralized technologies in developed industries that want to reinforce rather than improve service offerings should cause us great cause for concern.
In the actually known business school anecdote the case of one of the first life insurance requirements is often repeated. Shortly after this type of policy became available, the owner of the life insurance policy actually passed away while applying for his high-paying protection. When the deceased’s family tried to claim, the insurer wrote a new definition of how their company calculated “one year” to [successfully] avoid settling.
Speaking of laudable industrial ingenuity or defenseless profits is likely to depend on whether it is passed on in a lecture on strategy or ethics. However, with this story in mind, we now turn to the introduction of blockchain technology in the insurance industry:
“ARLANDA, Florida. Blockchain technology has a future in employee compensation operations because this technology can improve communication and increase efficiency in the industry as a whole,” said a presenter at the annual National Insurance Compensation Council symposium. a decentralized peer-to-peer network that provides policyholders and stakeholders with a way to “generate, store, manage and share data as a reliable transaction record,” said Paul Misen, Head of Distributed Book Technology and Director of Swiss Financial Reinsurance Re and CEO of B3i.
The blockchain consists of a distributed book, a consensus that provides a “single version” of information, cryptography for secure and valid transactions, and smart contracts that are automatically executed under specified conditions, Mr. Misen said. In a traditional insurance system, the flow of information from insurer to insurer to reinsurer to the capital market is inefficient, he said. Mr. Meeusen explained how technology works to improve efficiency rather than collecting and studying data in individual systems.
“We work together, but we control our data,” he said.
To compensate employees, the blockchain can provide stakeholders with opportunities to share personal and medical information, providing a secure place to store and access data. The technology will also allow you to test computer coverage across a 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 Mizyun said. May 19, 2018, Louise Esola, about business insurance
Blockchain can indeed offer a transparent, decentralized and unchanging record of digital data records. Possible extensions using automatically executed or complex “smart contract” events are also numerous. This is undeniable. The quality of the content may be something often forgotten or just falling under the excitement of technology.
Repeating existing methodologies with new means may mean abandoning opportunities for improvement. In other words, no matter which insurance policy is conducted centrally by the issuing company or recorded using decentralized technology, it says nothing about its practical implementation. The same issuing company has formulated and complies with the conditions.
The precautions, regulations, loopholes, and conditions of many insurance policies that prohibit payments to owners are too numerous to list here in detail. Suffice it to say that for many they are a recognized part of the insurance process. Now the constant digitization of the conditions of the insurance company with difficulties that may not be fully understood by individual owners of such policies, brings only benefits to the issuing company.
Here, rather than personal exchange, clarification or justification of any lack of understanding, here the unaltered digital consent of the owner with such a document is forever blocked. Although 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 useful only if sufficient knowledge of the meaning and implications of those records is available. The confusing and one-sided policy remains just that, whether the blockchain is turned on or off.
The very presence and survival of extremely lucrative insurance giants should hint at the structure of the business. Ultimately, like a casino, the company’s calculations and performance exceed our understanding of probability.
Like a round at the blackjack table, a player’s chance of making a profit or his satisfaction from the risk of participating himself outweighs what is essentially a guaranteed loss when measured on 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 measures, the basis of its insurance coverage exists, because the house is betting that we, the insurers, are wrong.
For any business it is unprofitable to pay more than to receive. Thus, the choice of insurance is available and still available, as purchasing them over a sufficiently long period of time brings the issuing company more than it needs for them when paying.
This is not to marginalize the many potential benefits, protections and security provided by insurance offers. As is the case with car accidents, for example, when analyzing economic benefits, attention to experienced centralized machinations to solve may be simply reasonable and well worth the cost, especially given the possible time requirements of the alternative. It’s easy to say that in all home insurance offers [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 take the first step back and ask if we really understand the policy before getting too excited about their constant record.