Insurance Fraud
Every year billions of dollars are lost on insurance fraud: Insurance claims are often overinflated. This is the main reason for ever increasing insurance rates.
While submitting an insurance claim after a theft, victims often feel entitled to add additional items of value to their claim, that are not actually missing. They justify this by stating they paid “more than enough” to the insurance firm over the years.
These illegal claims are often covered by insurances, due to the inexistence of a reliable check for the claimed items. Insurance firms are forced to spread these fraudulent costs over every policy holder, driving all insurance prices up.
Solution
Registry Blocks Insurance is the bridge that connects the RBID Item Registry to insurance companies for fraud prevention. This results in cheaper and more cost effective contents insurance.
If the owner of the product RBID submits a fraudulent claim, this person can never legitimately use, sell, register or insure the item again. After claiming the RBID of the product will be published on a blockchain Registry Blocks Blacklist. This drastically decreases the amount of fraudulent claims, which results in decreased insurance costs.
Registering items also benefits policy holders because they only pay for products they actually own, rather than paying for the average collective spread of all policy holders.
When policy holders register a significant amount of their belongings, insurance firms make much more accurate risk calculations, further reducing insurance costs.
Benefits
Insurance Firms:
- Reduced costs due to decreasing fraudulent claims.
- Reduce the number of employees needed to handle an insurance claim
- Reduce the number of human errors that arise when dealing with an insurance claim.
- More accurate risk calculations in comparison to traditional insurance firms.
Policy Holders:
- Faster approval of insurance claims.
- Exclusively pay for actual belongings.
- Cheaper insurance due to cost savings of insurance firms
How it works
