The concept of smart insurance contracts could seriously disrupt the insurance industry . The idea is that a blockchain - based contract could make payouts against insurable events without the need for policyholders making claims or insurers administering them . InsurETH built a smart insurance product demonstrating the concept last year : as information relating to delayed payments is plain fact and publicly available , automatic and immediate payment of a smart contact relating to such a claim could be triggered with little to no need for human intervention . To expand the concept across the sector , well - qualified oracles would be needed to establish what “ conditions ” exist and when they have been “ undeniably reached ” to create a bridge between the blockchain and current conditions of places , people and things in the real world . Looking forward , an evolved social network infrastructure could even be used to help validate claims in sectors such as motor insurance , where claims could be automatically triggered after an application by a smartphone app or the connected car itself . This potential technology could marry well with P2P insurance and enable a near - autonomous , self - regulated insurance business model for managing policies and claims .
The concept of smart insurance contracts could seriously disrupt the insurance industry. The idea is that a blockchain-based contract could make payouts against insurable events without the need for policyholders making claims or insurers administering them. InsurETH built a flight insurance product demonstrating the concept last year: as information relating to delayed flights is plain fact and publicly available, automatic and immediate payment of a smart contact relating to such a payment can be triggered with little to no need for human intervention. To expand the concept across the sector, well-qualified oracles would be needed to establish what “conditions” exist and when they have been “undeniably reached” to create a bridge between the blockchain and current state of places, people and things in the real world. Looking forward, an evolved social network infrastructure could even be used to help validate claims in sectors such as motor insurance, where claims could be automatically triggered after an accident by a smartphone app or the connected car itself. This potential technology could marry well with P2P insurance and enable a near-autonomous, self-regulated insurance business model for managing policies and claims.