There are few industries as byzantine as insurance.


This isn’t entirely the business sector’s fault. By definition, insurance operates in a high-risk environment. Premiums are quietly collected until some major incident forces a sudden – and large – release of funds. 

Such an incident throws the insurance agent’s calculations out of whack, as rates and benefits now need to be adjusted to replace the missing funds and ensure that future calamities are already in the budget.

This gets complicated when physical things are involved. Cars, boats, motorcycles, and airplanes all need insurance, and those real physical objects come with very real physical histories. A kaleidoscope of dents, dings, scratches, and scrapes affect the calculation of insurance premiums and, ultimately, the payout should those cosmetic issues become something direr.

It gets even more complicated when intangibles like health and life come into play, and another level of complexity arrives when different parts of the insurance chain – say, a hospital, an EMS service, and a customer – must talk to each other to figure out who owes what. It’s like divvying up the bill at a restaurant where each diner has ordered something different – and only has limited abilities to pay.

Then there are the legions of actual humans involved. Agents, underwriters, estimators, providers, and more all have a hand in the insurance pot, and a mistake by any one of them can cause untold headaches down the line.

The transparent nature of the blockchain has the potential to simplify the industry from the bottom up.