Six months ago State Farm revealed it was testing a
blockchain solution for auto insurance claims subrogation. That’s the process where the at-fault customer’s insurer pays the other insurer. Today at the 2019 Dig-In Conference, the partner in the project was revealed as USAA which achieved the top satisfaction rating in the 2018 J.D.Power survey for auto claims. Both insurers are members of the RiskStream Collaboration (
formerly RiskBlock), but this is not a RiskStream solution.
According to SNL Financial, in 2017 there were roughly $750 million in private passenger auto claims.
The companies have been working together since early 2018, and the project is still in the testing phase to decide whether it’s suitable for industry adoption. Testing has progressed to the stage where real claims data is being used to see how blockchain can speed up the subrogation process. However, the companies were keen to point out that no personal information is stored on the blockchain, only claim numbers and dollar amounts.
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