How Blockchain Could Help to Ensure Insurance Security
About half of the US population owns life insurance. A law mandating that every car owner must have car insurance (except for in New Hampshire and Virginia) means that approximately two hundred and eighty million people own car insurance. With these details, it is safe to assume that people’s personal details, including about their health, finances, residence, and more, are owned by multiple companies.
The information storage bank is a gold mine for hackers to misuse, in any way from using people’s medical weaknesses against them, to ruining them financially, or even identity theft. Data breaches in insurance companies have been commonplace in the past. Approximately 2,200 reports of health-related data breaches occurred between 2010 and 2017, and constituted over fifty percent of the health data breaches within that time frame.
With an efficient computer information security system like blockchain, this issue can be almost eliminated. Blockchain works in a decentralised manner, with each block protected by cryptography. If an unauthorised person tries to hack into the blockchain, the hacking device will be unable to use the information. In some instances the blockchain is reiterated onto every computer in the chain, meaning a hacker would have to reconfigure all the following blocks in the blockchain.
Implementing this system into insurance security would make it incredibly hard to gain access to people’s information and significantly lower the rate of identity fraud, and bank account and medical information theft within three years.