Today U.S. insurers State Farm and USAA announced their jointly developed enterprise blockchain solution for auto claims will be used by both firms in production. The two companies have been working on the project since early 2018.
After an auto accident, both party’s insurers communicate with each other and decide which driver is at fault. Based on that, one insurer will pay the other. But that process of settling claims is rather manual and inefficient. And it involves reconciliations between the insurers. With a blockchain that shares the data, there should be no need for reconciliations.
“In most cases, this blockchain solution will assist in speeding up subrogation recovery, resulting in an earlier return of the customer’s deductible,” said Robert Yi, chief claim officer at State Farm.
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