Singapore-based Raxel Telematics has partnered Acronis to encourage insurers to adopt blockchain to better protect the integrity and immutability of insurance data.
"Acronis blockchain-based data verification technology will enable insurers and businesses in other industries to verify data integrity. In the age of raging cyber-attacks, where data has become the primary target for criminal activity, it has a great potential to prevent fraud, reduce data processing cost and increase transparency," said Sergui Beloussov, CEO, Acronis.
According to Deloitte's Blockchain Applications in Insurance report, the insurance industry loses at least S$700 million a year on 'crash for cash' scams. These scams refer to insurance claims made by drivers who deliberately stage accidents and make various false and illegal claims against insurers. Insurance companies are unable to detect fraud due to multiple policies held up by different insurers.
Countering this, smart contracts powered by blockchain will ensure only valid claims are paid. Blockchain will reject multiple claims for one accident by detecting a claim that has already been made. It will trigger payments automatically when the insurant adheres to certain conditions, according to Acronis' press release.
"Our goal is to disrupt one specific area at a time and address the most common risk-based problems that our insurance customers face," said Dmitry Rudash, co-founder and CEO of Raxel Telematics.
"Automating claims is a whole set of extremely sophisticated products we are building in accordance with an extensive product roadmap. Together with Acronis, we are excited to provide our insurance customers with technology solutions that will allow insurers to cut the claims settlement period down to several minutes, or even seconds, in the not so distant future. The release of the first product is planned for Q3 2017," he added.