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International Journal of Computer & Organization Trends (IJCOT) |  |
| © 2025 by IJCOT Journal | ||
| Volume - 15 Issue - 1 | ||
| Year of Publication : 2025 | ||
| Authors : Rajkumar Govindaswamy Subbian, Pavan Kumar Gollapudi | ||
| DOI : 10.14445/22492593/IJCOT-V15I1P305 |
How to Cite?
"Smart Contracts and Blockchain - The Next Frontier in Trustworthy P&C Insurance" International Journal of Computer and Organization Trends vol. 15, no. 1, pp. 41-53, 2025. Crossref, https://doi.org/10.14445/22492593/IJCOT-V15I1P305
Abstract
The Property & Casualty (P&C) insurance space will ultimately be disrupted by blockchain technology and smart contracts through increased automation, transparency and operational efficiency. Smart contracts consist of self-executing contracts stored on a blockchain and programmed to execute the outlined terms and conditions once certain conditions are met. This automation simplifies P&C insurance fundamentals such as policy issuance, claims payments, and renewals by eliminating the need for human interaction, allowing instantaneous customer feedback, and potentially reducing costs. Moreover, trust among insurers, policyholders, and regulators can be enhanced in a blockchain world due to its stability and decentralization model, which fosters one version of the truth to mitigate fraud and disputes. In addition to operational efficiencies, smart contracts can enable tailored insurance solutions that include solutions for real-time rate changes leveraging anti-fraud measures of authentic data, which can enhance the underwriting process and contribute to better pricing and risk profiling. On the downside, regulatory uncertainty, technical complexity for brokerages and cyber risks are barriers to implementing this significant change in the industry. As these insurance technologies grow in maturity, insurers will need to be thoughtful in using emerging technologies that consider regulatory compliance. If successfully implemented, blockchain technology could foster a trust-based, customer-driven, resilient P&C insurance ecosystem.
Keywords
Property and Casualty (P&C), User Interface (UI), Machine Learning (ML), Application Programming Interface Native Cryptocurrency (API3), Azure Kubernetes Service (AKS), Internet of Things (IoT), European Insurance and Occupational Pensions (EIOPA), National Association of Insurance Commissioners (NAIC), Office of Foreign Assets Control (OFAC).
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