Blockchain Technology for Fraudulent Practices in Insurance Claim Process
Jaideep Gera, Anitha Rani Palakayala, Venkata Kishore Kumar Rejeti, Tenali Anusha
Abstract
On top of distributed computing, Bitcoin was implemented as cryptocurrency. Bitcoin originally came with blockchain technology to protect coins from misuse. Blockchain provided a distributed ledger of cryptocurrency transactions in an immutable form to protect data from malicious attacks. Thus blockchain complemented the security aspect of Bitcoin. In the later stages, blockchain evolved as a distributed ledger technology that is used in different domains like healthcare. There are different issues associated with different domains. For instance, in the insurance domain, there are issues related to false claims and the claims that are manipulated by competent authority illegally. This problem addressed in this paper by implementing an insurance application with blockchain technology. The consensus is used to ensure that the claim process of the insurance company will be carried out with integrity, accountability, and non-repudiation. Especially, every transaction is cryptographically signed and stored as a collection of blocks in the blockchain. This approach safeguards claim transactions and prevent any fraudulent attempts. A prototype application is built using the IBM blockchain platform and its underlying components. Experimental results showed that the proposed implementation prevents fraud claims in the insurance industry.