Policybazaar Becomes the First Insurtech Company in India to Adopt Blockchain Technology
With the aim of making insurance purchase as seamless as possible, Policybazaar.com, India’s largest insurance website and comparison portal, has partnered with Accrivis Network Pvt. Ltd., a data integration platform provider, to implement blockchain solutions to enhance customer centricity through data security and application integration. The insurtech platform is poised to adopt blockchain in its day-to-day operations to ensure that data is not tampered and payments are shared in a time bound manner.
By integrating this technology, Policybazaar.com is looking to monitor and lessen the extensive frauds that the insurance ecosystem often suffers, affecting both the business and the consumer. Currently, the Indian insurance industry loses USD 6.25 billion or nearly 10% of its revenue on grounds of various frauds, of which, 86% are attributed to the Life insurance sector. This is more than 6 times that of the general insurance segment that witnesses frauds to the tune of 14%.
Commenting on the partnership, Ashish Gupta, Chief Technology Officer, Policybazaar.com and Chief Executive Officer (CEO), docprime.com said, “We are a technology driven entity and are always keen on integrating emerging technologies that simplify the process of selling and buying insurance in a secured manner. In addition to allaying security issues of consumers using online channels, blockchain will be used by Policybazaar.com to address consumer queries and complaints in a time-bound manner.”
“At the moment, consumer redressal takes time due to varying IT systems used by different stakeholders in the system, which leads to non-uniformity of data. This leads to a lot of back and forth while resolving operational issues and the reconciliation takes a lot of time and effort, causing inconvenience to our consumers. Hence, integrating of blockchain technology is in sync with our mission of keeping consumer interest above all,” he added.
Once implemented, the technology will be able to disrupt how companies communicate with their partners. Using this technology can enable a secure, private, fast and reliable communication with partners. Gupta also relayed that the technology will enable Policybazaar.com to enhance security and privacy of data, at the same time, increasing their control on ability to access the data. This technology is expected to make the data indisputable and time-stamped for reliability, which will result in highly secure, more efficient and transparent exchange of information using a single network instead of multiple modes of information sharing.
Commenting on the partnership, Jignesh Vasani, CEO of Accrivis Network Private Limited said, “Blockchain is deemed as the Internet of Transactions. It is also considered as the Truth Machine or truth serum for all transactions. We believe that by providing a blockchain platform for organisations to transact with each other, we will resolve any data conflict or unavailability, while providing increased security. We are excited about this partnership with Policybazaar to disrupt the insurance industry with our unique service offering.”
The tie-up is expected to enable PolicyBazaar.com to explore multiple use-cases of blockchain technology, such as, a shorter turnaround time for services and lesser cost of processing transactions, passing the benefits on to consumers. The consumers will be protected from fraud, as historical data can be used for verification and analysis by PolicyBazaar.com and its partners. The company has set up an innovation lab consisting of 30+ engineers and data scientists to develop new-age tech solutions in order to augment customer centricity.