Bitcoin is the most popular digital currency that has become a global sensation since it came into existence in 2009. It is also called a decentralized peer-to-peer (P2P) electronic cash system because no central authority is involved, like banks, government, etc.
Blockchain is a shared and replications database that stores Bitcoin’s transaction information.
This technology uses cryptography for digital signatures and hashes to make sure the transactions cannot be changed once they have been recorded, making Bitcoin secure and reliable. The Official Website of BitIQ might help you in crypto trading,
10 ways in which bitcoin has positively transformed the insurance industry in the USA
1. Bitcoin has eliminated the need of using credit cards
Bitcoin has eliminated the need to use credit cards, protecting consumers purchasing an insurance platform against identity theft.
2. Bitcoin has helped in accepting payments from anywhere in the world
Bitcoin has made it possible to accept payments from anywhere in the world without any difficulty; this helps insurers expand their business worldwide and increase their income due to diversification.
3. Bitcoin has eliminated the need of using gold as collateral by bankers for insurance policies
Bitcoin has eliminated the need to use gold as collateral by bankers for insurance policies. This makes it easier to transact with customers globally without worrying about transportation and storage of the gold.
Also, no one can confiscate your bitcoin unless you are hacked or voluntarily reveal your private key.
This can be helpful during civil unrest when the government hypothetically freezes all accounts, including insurance policies, and the insurer cannot protect their customers from such unanticipated events.
4. Bitcoin has reduced the transaction costs by nearly 100%
So the insurers who will accept bitcoin as payment for policy premiums will benefit in both ways because their transaction costs will be nearly zero compared to the other currencies.
Also, by accepting bitcoin, they are widening their customer base in terms of geographical location, and in this way, they are reducing risk factors for their business.
5. Bitcoin has transformed the insurance industry by converting back office cost into out front sales expenses
Bitcoin has transformed the insurance industry by converting back-office costs into out-front sales expenses.
6. Bitcoin has reduced the requirement of paper business
Insurers accepting bitcoin as payment can eliminate the need for paper business. This will save them from legal costs and delays associated with paper transactions.
Also, bitcoin can protect against fraud because it is irreversible after funds have been sent.
7. Bitcoin has fostered transparency between insurance company and customers
Bitcoin has made it possible to have a transparent relationship between an insurance company and customers.
This will help the insurers to increase their trust with customers, which is necessary for a healthy business.
8. Bitcoin has increased the possibility of insurance contracts
By accepting bitcoin, the insurer is provided with an opportunity to enter into contracts that were not possible before due to the high risk and cost.
9. Bitcoin can be used to transfer money between insurance companies and customers
Bitcoin can transfer money between insurance companies and customers.
This makes it possible for the insurance company to expand their business globally without worrying about the fluctuation in exchange rates of currencies which has increased operational costs.
10. Bitcoin is a good hedge against stocks and bonds
Insurers have invested a lot of money in stocks and bonds; by investing a part of their capital in bitcoin, they can protect against any change in the market trends.
Also, companies will be interested in investing with insurance companies if the latter accepts bitcoin as payment, increasing competition among insurers and decreasing premiums.
Conclusion
Bitcoin has not only transformed the insurance industry, but it is also transforming other industries, including healthcare, food and beverage, transportation, etc., positively.
So, in the future, you can expect more changes in the insurance industry due to bitcoin, which will result in increased customer satisfaction and reduced operational cost for insurers.
Bitcoin is not yet legalized in most countries. Still, slowly and steadily, many countries, including India, China, and Australia, are taking the proper steps to legalize bitcoin, making it highly likely that shortly, every country will start accepting bitcoin as a legal payment method. So, keep an eye on bitcoin because it has unlimited potential, and no one knows how high it can fly.
Story by Jean Nichols
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