USAA and State Farm, two of the top-rated car insurance companies in America, are changing with the times. They have teamed up to improve the insurance claims process, and they’re using blockchain technology to do it.
Blockchain technology has been in the news a lot lately, from the rise of Bitcoin to the high prices being paid for NFTs. But how does blockchain tech work? How do these two insurance giants plan to use it to innovate their industry? And will this collaboration help you
? Find all of the answers to these questions below.
What is blockchain technology?
A blockchain is a type of database. Most databases are structured like a library so that the information they store can be easily searched and retrieved. But a blockchain stores data in the order that data enters it—like a chain.
The advantage to this system of recording information is that it’s very difficult to change, making it more secure than a traditional database.
Blockchains are used for a number of purposes, some of which are mentioned above, but one of their main strengths is their ability to safely share and encrypt data.
process. Subrogation is the last part of the insurance claim process, when one insurance company recovers the claim’s costs from the insurer of the person found to be at fault for the accident.
In a statement released by USAA, Sean Burgess, the company’s chief claims officer, said that the new technology will speed up what was previously a manual process. "Ultimately," he says, "This will get money back to our members and customers faster."
The technology will also enable companies to reduce costs on labor and resources.
There’s no telling exactly how this new technology will affect the insurance industry, whether the savings it gives insurance providers will trickle down to customers, or whether the benefit to drivers will remain limited to quicker claims.
The good news is that you don’t have to wait to start saving. You can save on your car insurance right now with
"B.A., English Literature, MedAndrew Koole is an insurance writer who specializes in writing automotive news articles. Andrew’s mission is to create informative and instructional content car owners can use to reduce costs, master repair skills, and learn more about the automotive industry. Andrew has published over 600 articles for Jerry on topics ranging from automaker history to car insurance deductibles. Before joining Jerry in 2021, Andrew split his time between freelance writing in the entertainment and travel industries and creative writing in poetry and fiction. His writing is featured on a variety of arts and travel websites, including his own Ponytail Press.