Smart contracts based on hyperledger fabric blockchain for the purpose of health and life insurance services

Abstract

Nowadays the standard health and life insurance service has devolved into an inefficient industry. In many cases the time for reimbursement is crucial for customers, because when they most need help, they can end up fighting in vain for reimbursement from insurance companies, whose profits too often depend on avoiding paying out. The main goal of using Blockchain technology in health and life insurance is to make the claim process more efficient, to enable lower operational costs and to reduce the direct payments. This paper presents a solution, based on smart contracts on a Blockchain, whereby the insurer pays directly to the hospital for the services provided in favor of the insured and only if the sum insured is insufficient, the patient pays the hospital. This solution is much faster for the insured, reduces operating costs for experts, does not require unnecessary money transfers (between patient and hospital and between insurer and insured patient) and at a time when the patient's health is at risk, reduces emotional and his/her physical discomfort, as it does not require activities for filing a claim with the insurer.