American International Group, also known as AIG, has recently announced its issuance of Blockchain-based insurance policy. The insurance giant pilots the first multinational smart contract-based insurance policy using Blockchain in partnership with Standard Chartered Bank and IBM.

Blockchain in insurance sector

According to AIG, the insurance sector is seen to vastly benefit from the Blockchain technology. It will help cut down the processes that most insurance providers usually face whenever doing all the paperwork and filing of all the requirements.

With the aid of Blockchain technology, it will help speed up the processes for both the insurance provider and its customers. Not only will it makes the process faster but also cheaper because a lot of time consuming steps will be shaved off from the process.

AIG has also partnered with Standard Chartered and IBM in this venture. However, Standard Chartered has not divulged any information on the policy yet. With the issuance of this new insurance policy, it is possible that many insurance companies are likely to follow.

Blockchain utilized in various industries

Blockchain technology started becoming popular starting after powering Bitcoin and cryptocurrencies and has been widely adopted throughout the banking sector. In fact, China banks have started using Blockchain technology to fight off frauds. Some of the banks that have already heavily invested in Blockchain technology are Ping An Bank and Bank of China. Aside from that, banks in Japan are already investing in Blockchain technology including Nomura, AEON Bank, among others.

With both banking and insurance sectors planting their seeds into Blockchain technology, it likely to see other sectors rapidly embracing the technology as well. With Blockchain technology facilitating new and more secure mode of financial transactions, it’s only a matter of time till other industries will fully adopt.