Application of blockchain in Usage Based Insurance

Abstract

Usage Based Insurance (UBI) consists of schemes such as Pay As You Drive (PAYD) and Pay How You Drive (PHYD). In this paper, we detail the application of Blockchain in Usage Based Insurance schemes - PAYD and PHYD. Using Blockchain, we propose an effective mechanism to store transaction data and also the condition of the vehicles. We also detail measuring these parameters to calculate premium amounts, create new insurance schemes and also a new market for used vehicle sale.