USA Company To Transfer Subrogation Process To Blockchain
State Farm, an American insurance company, began testing a blockchain solution aimed at speeding up the subrogation process in car insurance, as follows from a press release.
Subrogation is the right that most insurance companies have. It allows the insured person to claim legal compensation from the person who caused a damage. Usually, subrogation is the final part of the insurance process.
State Farm is working on the blockchain solution in partnership with another insurance company and aims to determine how a distributed ledger can help minimize the time required to complete all subrogation steps related to the processing of payment documents in the course of testing.
Subrogation is comparatively manual and time-devouring, requiring constant communication between insurers, Mike Fields, State Farm Innovation Director, stated. Blockchain is safe and will assist in automating all processes, recording every payment that is easy to verify, the expert added.
State Farm is a group of car insurance firms operating in the US market since 1922. In 2018, the company is 38th in the Fortune 500 ranking. State Farm employees process more than 38,000 insurance claims daily.
As previously reported, the charity organization Oxfam will provide an opportunity for microinsurance on blockchain to Sri Lanka farmers who are involved in rice cultivation.