A Smart Contract Architecture Framework for Insurance Industry Using Blockchain and Business Process Management Technology

Abstract

The Covid-19 pandemic prompted insurance companies to shift from their traditional operating mode to a digital one. This shift is to promote improved performance, cost reduction, and enhanced customer service. Blockchain is to aid the insurance industry radically transform its operations by enabling faster exchange of verifiable data, visibility for all parties, and transactions underpinned by pervasive security and trust. It permits the replacement of third parties so as to benefit from timestamping services, storage of evidence, and the history of actions taken to verify the identity of the original issuer and any cosigners of a document. In this article, we propose a solution for insurance service providers based on a private blockchain for E-insurance service providers–customers corresponding to a community network. The objective of this article is to support the actors involved in this decision-making process by illustrating what a blockchain is, by analyzing its advantages and disadvantages, as well as by discussing the use cases drawn from the sector of insurance, which could easily be extended to another domain. Besides, we present our architecture proposal to make all types of insurance smart contracts based on business process management and blockchain.