Call Us

FOR EXISTING POLICY

Have query on premium, payout or any servicing need?

Call us:

1 860 266 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

Dedicated NRI Helpdesk:

+91 22 6251 9966

Monday - Saturday | 10 am - 7 pm IST

Call charges apply

FOR NEW POLICY

Want to buy a new policy online?

Call us:

+91 22 6984 9300

Give missed call for a call back:

+91 11 6615 8748

Monday - Sunday | 8 am - 11 pm IST


Exclusively for NRIs:

Call us:

Give missed call for a call back:

+91 11 4473 0242

Available All Days | 24 x 7

Language

Back Arrow Icon
Close Button
Back Arrow Icon
Close Button

Need assistance in choosing the right insurance plan? Get a call from our Expert.

Need assistance in choosing the right insurance plan?Get a call from our Expert.

+91 dropdown arrow

Select Plan dropdown arrow
  • Term plans
  • Saving plans
  • Wealth plans
  • Retirement plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in. T&C apply.

Image Of Future of Life Insurance - Article Banner

How Blockchain & Bitcoin will Impact the Future of Life Insurance?

24-June-2021 |

Over the past few months, blockchain has been a much-discussed topic in the world of business, especially in the insurance industry. A consortium of the leading life insurance companies of India has developed Bitcoin applications that would facilitate cross-company sharing of data. This platform will help insurance companies reduce their dependence on data aggregators to obtain client and policy details for a wide range of insurance-related purposes.

How is Technology Changing the Life Insurance Industry?

The question is, “How is technology used in insurance?”. The Indian insurance industry has undergone many transformations in the past decade. From insurance agents promoting and selling their product door to door to customers buying a money-saving plan with a few clicks via their smartphones, the face of insurance has changed completely. All insurance companies now have super simple websites and portals that make insurance procedures very easy and quick.

 

Image Of Future of Life Insurance - Blog Banner



How is Blockchain Being Used in Insurance?

 

Though still not mainstream, blockchain technology has surely created a buzz. Before we see how it works, let us first understand what blockchain is. Blockchain is a data structure that allows creating a digital record of transactions and the ability to share this record with a distributed network. Bitcoin, on the other hand, is the first cryptocurrency, a form of digital currency or electronic cash. The bitcoin rate is not backed by any government or country.

With the help of a blockchain, entries can be made into an information record. The updating of these records can be controlled. A blockchain thus allots an exclusive identification to a user whose details are not disclosed during the transaction process. Let us understand how blockchain technology is changing the life insurance industry.


Suppose Tarun Kumar gets in touch with a life insurance company to buy a term plan. However, his proposal is rejected due to his poor medical condition. Tarun then visits another insurance company to buy a term plan from them. Company 2 would now start afresh and run a pre-policy medical screening on Tarun. Had both the companies been using blockchain technology, Company 2 would already have access to Tarun’s medical reports. 

 

Benefits of Blockchain in Insurance

Let us now take a look at the benefits of blockchain in insurance.

  1. Fraud Detection

    One major challenge faced by life insurance companies is fake and fraudulent claims. With the use of blockchain, it will be easier to validate the truthfulness of a claim. Insurance companies will be able to dig into historical data to detect a client's past fraudulent activities and eliminate such discrepancies beforehand.

  2. Decrease in Administrative Costs

    It is evident that blockchain will help minimize administrative costs for life insurance companies. There would be an automated verification of the customer’s identity, the validity of the contract, the registration of the claim, and the data from the third party.

  3. Transparent Procedures

    Many policyholders feel a ‘trust deficit’ when it comes to claim procedures. The correct use of blockchain technology would ensure that updated and relevant information reaches the insurer at the earliest. When data streams such as hospitals, police teams, and insurers are available through digital technologies, the insurance company will be automatically informed that an unfortunate incident has occurred.

  4. Speedy and Easier Claims

    Blockchain can greatly help simplify the claim procedures. Let us see how with an example. Suppose Ravi Bhatia purchased the Tata AIA Life Insurance Fortune Guarantee Plus(UIN: 110N158V02) for himself with his wife Sarita as the nominee. After his untimely death, his wife would have to obtain a death certificate from the authorities and submit it with TATA AIA Life Insurance. The company would then verify the information and process the claim. This is a standard procedure that can take up to 30 days.

    However, if blockchain technology is integrated fully with the systems, there would be a close network between the insurance company, the hospital, the health department, and the nominee. When a policyholder passes away, the details would be entered into the IT system of the hospital. This would be further connected to the network, and all entities would be updated simultaneously.

    In simple words, the claim process would become quicker and easier not just for the insurance company but also for the nominee.


The Way Forward

One of the key benefits of blockchain is that information sharing leads to the building of trust. Information/data, once recorded, cannot be erased in isolation. This provides for safer, much more secure transactions between the users. The insurance companies need to fully understand the pros and cons of blockchain technology, as only then would they be able to benefit from it. Internal concept proofs and customer processes must be tested before a full-size implementation can be carried out. However, there is no denying blockchain technology will ensure real-time availability, record-keeping consistency, transparency in insurance procedures, prevent procedure duplication, and reduce operations costs. There is no such thing as a bitcoin insurance policy as Bitcoin is only a technology that can be used to make selling insurance policies very efficient.


Tata AIA Life Insurance is one of the first thirteen Indian life insurer companies to have created a blockchain consortium(Source: Economictimes). With this, the company hopes to reduce the risk of a data breach, money laundering, and fraud. Through cross-company data sharing, it is anticipated that Bitcoin applications would improve efficiency, turnaround time, and record-keeping, thus promoting an excellent customer experience.

 

L&C/Advt/2021/Jun/1025

 

Get complete protection at affordable cost & tax benefits

+91 dropdown arrow
  • +93 Afghanistan

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.


 

Looking to buy a new insurance plan?

Our experts are happy to help you!

+91

Select plan
  • Term plans
  • Saving plans
  • Retirement plans
  • Wealth plans
  • I don't know/I need help

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in

People Like You Also Read

When You Must Terminate Life Insurance Policy?
Read More
Is The Income Tax Rate in India High?
Read More
How a Firm Digital Backbone is Transforming the Life Insurance Industry?
Read More
Term Insurance Plans for Smokers: The Detailed Guide
Read More
Advantages and Disadvantages of Life Insurance Policy
Read More
What are the Steps To Download PLI Statement Online?
Read More
EPFO Claim Status Online: The Complete Guide
Read More
ULIPs - Advantages and Disadvantages
Read More
Is The Surrender Value of ULIP Taxable? Everything That You Need to Know
Read More
4 Ways You Can Determine the Surrender Value of ULIP Funds
Read More

People Like You Also Read

When You Must Terminate Life Insurance Policy?
Read More
Is The Income Tax Rate in India High?
Read More
How a Firm Digital Backbone is Transforming the Life Insurance Industry?
Read More
Term Insurance Plans for Smokers: The Detailed Guide
Read More
Advantages and Disadvantages of Life Insurance Policy
Read More
What are the Steps To Download PLI Statement Online?
Read More
EPFO Claim Status Online: The Complete Guide
Read More
ULIPs - Advantages and Disadvantages
Read More
Is The Surrender Value of ULIP Taxable? Everything That You Need to Know
Read More
4 Ways You Can Determine the Surrender Value of ULIP Funds
Read More
Website Logo Image Icon

Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance