Role of Blockchain Smart Contract in Insurance Industry

Abstract

Blockchain smart contracts are emerging research area among Industrial communities and academics. Blockchain enabled Smart contracts provide automatic processing, security in decentralized environment and removes the barrier of trusted third party. Insurance industry is one of the targeted areas for hackers, and takes more time for processing. The Insurance industry will change dramatically when integrating with Blockchain technology, with high degree of security, real time working and minimum processing cost. Writing smart contracts are very challenging task as Blockchain is secure itself, but sometimes blockchain enabled smart contracts leads to vulnerabilities, have to face scalability & privacy issues also. Authors gives overview of Hyperledger Fabric as it is standard platforms for implementing smart contracts for permissioned blockchain, and proposed a research framework for smart contracts use cases in insurance sector. Second, the technical and legal challenges, as well as the current research are discussed. This paper is aimed to provide guidance for future research in Blockchain smart contracts in insurance industry.