Why integrate a Blockchain into the insurance industry?
Blockchain ’ s most widespread applications are found in the financial services market. It provides financial institutions several benefits like establishing trust between transacting parties and settling disputes in real-time. Let us see how Blockchain improves the efficiency in the insurance sector, Understanding Reinsurance Reinsurers are companies that guarantee insurance policies that insurance companies have already sold, also known as the cedent. For example, in the case of insurer John has insured a startup against diverse types of damage it may provoke. In the context of any natural disaster like flooding or a hurricane, the startup might experience huge losses, perhaps in millions of dollars. But, insurer John does not have enough assets or liquidity to cover the incurred cost without going ruined. Still, insurer John needs to provide insurance along with avoiding liquidation. In this case, it will avail insurance from another insurer (or reinsurer) to distribute some