Blockchain technology and crypto currency have found their way into health insurance marketplaces.
SuchApp, a blockchain-enabled, multi-channel messaging platform, and Wish Knish, provider of a decentralized marketplace platform, are teaming up to develop an online insurance marketplace that allows consumers to purchase policies with crypto currency and keep a record of those purchases using blockchain technology.
The two companies are betting the marketplace, scheduled to launch in September, will simplify finding, purchasing and managing insurance policies online and make it easier for insurance companies to increase their presence in underserved markets globally, says SuchApp CEO Ronny Shany.
“Our goal is to create a global insurance marketplace that increases customer service and communication between clients and adjusters and provide a secure and convenient marketplace that benefits both the business and the customer,” Shany says.
The two companies are currently negotiating deals with unidentified major carriers across North America, Europe, and Africa, Shany adds.
Under the partnership, WishKnish will provide the marketplace technology that manages the workflows and documentation, along with the expertise of implementing blockchain powered marketplaces. SuchApp will provide the SPS Token or crypto currency consumers will use to purchase policies, group functionality, loyalty programs, interactive chat, voice and video conferencing.
Through SuchApp’s 5G blockchain-enabled messaging platform, consumers can buy insurance policies using SuchApp’s SPS Token, a digital currency operating on the ERC20 protocol, and manage their policy online. Transactional data such as claims requests, policy purchases and documentation submissions will be timestamped on the public blockchain ledger and encrypted.
In addition, insurance adjusters can create customer service groups to address claims and other relevant issues and location-based messaging via video conferencing with up to 4 people. Customers will be able to open a claim through the marketplace and interact directly with the insurance carrier via chat, voice and 4K video conferencing.
“This eliminates all the hassle of trying to go through third party agents and trying to navigate archaic corporate communication systems,” says Shany. “We believe this represents a huge step towards empowering truly efficient insurance markets.”
What makes blockchain technology, which was developed to serve as the ledger for Bitcoin transactions, attractive for recording the sale and transfer of any asset, such as health insurance policies, is that it is a cryptographic record of a transaction with mathematical rules that prevent a transaction from being fudged, which prevents fraud. Further enhancing the technology’s appeal is its simplicity. With the blockchain, assets can be moved directly between two trading partners in much the same way data flows across the internet, eliminating, in theory, the need for intermediaries to help facilitate the transfer, thereby creating a more streamlined and economical process for transferring assets.
“By providing a secure, decentralized platform that increases transparency and is protected against failure and tampering, we are able to leverage blockchain technology to ensure customers and insurance companies are better protected against fraud,” says Alisa Gus, CEO of WishKnish.
Consumers can purchase SPS Tokens in three ways: SuchApp’s public token sale scheduled March 20, through the SuchApp website, and through several cryptocurrency exchanges. SuchApp will announce which cryptocurrency exchanges will offer its SPS Tokens after its initial public sale. During the company’s three-day token pre-sale that ended March 1, SuchApp sold more than 54 million tokens. Each token is valued at $0.05.
Consumers can purchase tokens using cryptocurrencies Bitcoin and Ether, via a wire transfer or credit card. Tokens can be stored in SuchApp’s digital wallet.
Consumers can also earn SPS Tokens by shopping at local businesses that use the SuchApp loyalty app. For example, a coffee shop can offer tokens to customers that can be used for in-store purchases or at any other business within the SuchApp loyalty network.
The loyalty app is currently in alpha testing. Public beta testing is scheduled to begin this summer, Shany says.
There is no charge for consumers or companies for utilizing SuchApp. Providers will need to meet WishKnish’s normal marketplace fees, which were not disclosed.
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