Smart Contracts for Insurance
Smart contracts are the best tech insurnace comapnies can use and save a lot of money.
Insurance Policy Holders to Be Insurers on Umbrella Coin’s Blockchain
Source: https://cointelegraph.com/news/insurance-policy-holders-to-be-insurers-on-umbrella-coins-blockchain
The insurance business is the latest sector to come under the scrutiny of disruptive technology from the Ethereum Blockchain, with Umbrella Coin hoping that decisions on payouts can be done securely on a trustless network, thereby avoiding the middlemen.
The world of insurance operates in a space full of out-of-pocket costs, such as deductibles and excesses. Umbrella Coin is looking to enter that space by employing smart contracts to do the work of middlemen, hopefully reducing the costs.
Additionally, instead of decisions being made by insurers looking to protect their bottom line, users who are both the insured and the insurer's on Umbrella Coin’s UMC network, under active development for the moment, will be the ones making the decisions on claims.
Nice post :) follow
Can you explain in a simple way how smart contracts work?
Thank you,
@martinmusiol
Smart contracts help you exchange money, property, shares, or anything of value in a transparent, conflict-free way, while avoiding the services of a middleman.
The best way to describe smart contracts is to compare the technology to a vending machine. Ordinarily, you would go to a lawyer or a notary, pay them, and wait while you get the document. With smart contracts, you simply drop a bitcoin into the vending machine (i.e. ledger), and your escrow, driver’s license, or whatever drops into your account. More so, smart contracts not only define the rules and penalties around an agreement in the same way that a traditional contract does, but also automatically enforce those obligations.