Blockchain + flight delay insurance, the second compensation era is coming?

In recent years, there have been many controversies about flight delay insurance. Some passengers complained that they often purchased flight delay insurance without knowing it, but the insurance company said that the compensation rate of the flight delay insurance underwritten was close to 90% or even 100%, and it was not profitable at all. In addition, there are even many speculators who use loopholes in the rules to defraud insurance premiums.

In the first half of the year, there was an incident of fraudulent insurance on aviation delay insurance that aroused widespread concern in the society. A woman surnamed Li in Nanjing made a profit of nearly 3 million yuan by purchasing a virtual itinerary through nearly 900 flight delays. She was arrested by the local police because her practice was suspected of fraud.

The essence of these problems is actually very simple, which is the information asymmetry among the three main bodies of users, airlines, and insurance companies. Insurance companies, in the process of claiming, due to various possible scenarios involving consumers and airlines, complicated procedures, numerous materials, difficult verification and small target amounts, airlines are willing to pay compensation directly, and the second best thing is to take delay insurance as a A marketing tool, not a profit-making project. Ordinary users cannot directly and have no obligation to clarify the real situation of the insurance company, so they suspect that they are bundled and sold, and the service experience is poor. At the same time, it also gives opportunities for speculators to take advantage of, and it is not uncommon to cheat for delay insurance.

Breaking such a vicious circle actually only requires the application of a science and technology - the blockchain. Utilize the technical characteristics of the blockchain distributed ledger, as well as the application of encryption algorithms and smart contracts, to eliminate the information island problem among users, airlines, and insurance companies. With a brand-new credible system, we can provide users with better services, improve the profit margin of insurance companies in delay insurance, and help the steady development of aviation insurance business.

Today, Wanglian Technology will start from the application of blockchain technology in delay insurance, a specific type of aviation insurance, to provide you with some technology sharing.

In the case of flight delay insurance, the establishment of an aviation insurance application platform based on blockchain technology can eliminate the occurrence of most insurance fraud. The non-tamperable nature of the information makes the data on the blockchain aviation insurance application platform have a natural credible gene, open, transparent and traceable, which reduces the cost of trust between users, insurance companies and airlines, and greatly increases the risk of default. The cost makes fraud insurance no longer a profitable thing.

The data on the blockchain aviation insurance platform is also unique, which means that the user’s behavior trajectory on it can be completely traced. This kind of time-stamped data greatly reduces the pain points in the bid verification and underwriting process—— Authenticity and uniqueness can completely restore the truth, further protect the basic rights and interests of users, and can also improve the work efficiency of related insurance companies. The expenditure has more room for profit.

In the past, the flight delay insurance claim process was very complicated, requiring the submission of application forms, insurance policies, personal identification, delay time and other supporting materials. At the same time, the bid amount was small, usually only a few hundred yuan, and ordinary users often voluntarily gave up due to trouble. own rights and interests, and even choose not to purchase this type of insurance directly.

With the development of information technology, in order to expand the market, since 2014, insurance companies have launched a variety of aviation delay insurances that actively pay claims: compensation for delays of 1 hour, 2 hours, 3 hours or even 1 minute, etc. That is to say, without the need for customers to submit proof materials, the insurance company will track the delay of the insured according to the data in the system, and pay immediately once the claim standard is reached. Although this form is convenient for users, it allows the insurance company to bear all the costs and risks. If it is not profitable, it will be difficult to have further development, and the related industries present a difficult situation for development.

The application of smart contracts can not only guarantee instant compensation from the technical level, but also strive for profit margins for insurance companies.

Smart contract is one of the core applications of blockchain technology. The biggest advantage is that it can reduce the participation of human factors, and it is not limited by time and space, and it can complete automatic settlement anytime and anywhere. Therefore, the use of smart contract technology can complete the iteration of claims settlement efficiency and realize the self-insurance under the smart contract - delay, that is, compensation.

Specifically, the user directly completes the signing of the delay insurance with the insurance company point-to-point on the blockchain aviation insurance platform. At the same time, using the real-time updated flight data of airlines on the platform and the global air traffic database as the basis of big data, the compensation clauses are formed into automated instructions through codes. When the user signs a contract with the insurance company, as long as the agreed event occurs, the Trigger the system to complete the automated payment settlement.

Therefore, the smart contract can be completed in an open and transparent manner to ensure authenticity, and automatically complete the payment. That is to say, it improves the user experience, eliminates the waste of resources caused by false insurance policies, avoids false insurance policies, and eliminates the waste of resources in the industry.

The transparency of business processes not only improves work efficiency, but also further reduces the operating costs of related enterprises. Putting the delay insurance business on the blockchain through blockchain technology improves the transparency of the entire business process of insurance transactions, and even loss assessment and compensation, and also improves the efficiency of the entire transaction process of aviation delay insurance, showing the benefits of users, insurance companies and airlines. A win-win situation for all parties.

textSpecifically:The automation of some processes reduces the degree of human participation and saves the labor costs of related enterprises; the digitization of verification data reduces the time cost of users and saves the office resources of insurance companies; the whole process can be traced to the source, reducing the need for confirmation when problems occur The difficulty of loss has also virtually improved the awareness of employees and saved part of the management cost for the company... Cost reduction and efficiency increase will definitely promote the green development of the industry, so as to provide users with better services from the source and form a virtuous circle .

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