INSURANCE TECHNOLOGIES (INSURTECH): BLOCKCHAIN AND ITS POSSIBLE IMPACT ON TURKISH INSURANCE SECTOR

Blockchain is a trustless technology which offers the highest level of transparency. Based on trust, the insurance sector and the use of blockchain may seem contradictory. However, leading international insurance companies are already investing in blockchain. It is suggested that the blockchain technology will bring efficiency to insurance processes and allow for better policy pricing and risk management, an improved insurance compensation experience which, in turn, will increase the trust placed on the sector, while ensuring the ability to offer services to an increased number of clients with the development of new insurance products and the use of smart contracts. In order to ensure that blockchain proves beneficial for the insurance sector, several systems and actors available in the sector will need to use blockchain-based insurance practices. Insurance companies will need to take several steps if they are to incorporate blockchain processes to their new business model. Insurance companies need to better understand the blockchain technology and to make necessary adjustments to their systems, and they need to decide which processes are to be incorporated to their business and how to introduce these processes to their clients. This study focused on the application areas of the blockchain technology in the insurance sector, its impact on the sector, the steps insurance companies need to take in order to ensure the widespread use of blockchain-based insurance practices, and it explored a number of current blockchain practices