Blockchain and its business application—A breakthrough solution for the motor recovery process.
21st Jun 2020 Articles
Motor recovery claims between insurance companies can be a tedious procedure that can take up to six months or more depending on the nature of the claim. Making a claim is sometimes a customer’s only direct interaction with an insurer, so ensuring the process is as seamless as possible is crucial.
The use of blockchain technology in the insurance industry can relieve bottlenecks in the value chain, driving process efficiency and creating trust between relevant parties, especially the customer.
The key driver, therefore, behind Addenda Technologies’ partnership with ADNIC during FinTech Hive’s accelerator programme was delivering an innovative blockchain solution in motor recovery to minimize lengthy manual processes between companies and customer challenges.The recovery process and resulting receivables is a challenge for the insurance industry and there have been calls for some time to introduce a digital platform that insurance companies can participate in to ease the process. ADNIC has taken a lead in this key area since it will encourage other companies to introduce digitalization and encourage transparent and fair dealings.
As a result, the fruitful partnership between the two companies gave rise to a secure recovery solution based on blockchain technology, where transactions are interlinked, allowing companies to settle motor claims at a fraction of the time and cost, that the previous manual method was able to achieve. Invitations have since been extended to numerous insurance companies to join the platform, of which Emirates Insurance and AXA are now a part of. The UAE Insurance Authority and Emirates Insurance Association have both encouraged the adoption of Addenda Technologies’ blockchain platform since it introduces standard protocols in intercompany dealings.
The platform, which commenced in late 2019, has already proven successful, with significant increase in transactions led by ADNIC. Our partner has also arranged multiple workshops to train the motor recovery teams of participating companies on platform best practices.
Insuretech in the UAE is constantly evolving and enabling the sector’s growth to new heights. Solutions provided by Insuretech heavily focus on customer satisfaction and creating personalized digital experiences. According to MAGNiTT, a community and data platform that connects investors, mentors, and emerging companies in the Middle East, $26 million has been invested in MENA-based InsureTech startups, which is a record amount. In addition, while the current business climate might prove challenging for some industries due to the effects of COVID-19, this is the time where Insuretech can help deliver agile products and services for customers.
ADNIC has been committed to introducing automation for its key processes throughout its business and back office departments and has a robust digital transformation strategy, which envisions investment in artificial intelligence, blockchain, robotic process automation and other technologies in order to improve operations. The company has been hosting
regular meetings with potential partners to encourage the use of the motor recovery platform and to identify enhancements to the system. Addenda Technologies has truly proved to be a great enabler as a blockchain startup by bringing innovative solutions to the UAE’s Motor, Health and Life insurance sectors.