Blockchain Insurance Claim Verification via Dual Elements
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Solution Overview
Problem
Insurance claim transactions are lengthy and prone to fraudulent activities due to the need for extensive paperwork and multiple-party verification, leading to delays in fund settlement and loss for financers.
Innovation Solution
A blockchain-based method utilizing two distinct verification elements to securely record and settle insurance claim transactions, ensuring all parties agree at different stages, with the proof of claim collected electronically to prevent fraud and eliminate paperwork delays.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional paperwork-based verification process is used, then security and verification accuracy are improved, but transaction time and operational complexity increase significantly
Solution Approach 1:
The patent replaces the mechanical paperwork-based verification system with an electronic blockchain-based system. Verification elements are captured electronically via camera or NFC, automatically verified against blockchain records, and processed through automated smart contracts, eliminating manual paperwork handling while maintaining verification security through cryptographic proof.
Solution Approach 2:
The system enables self-service verification where the claimant's device automatically captures verification elements, the blockchain network automatically validates these elements against stored records, and smart contracts automatically execute settlement when verification succeeds, reducing reliance on manual intervention at each step.
2Reliability
If multiple parties are involved in verification, then security and fraud prevention are improved, but device complexity and coordination difficulty increase
Solution Approach 1:
The patent segments the verification process into distinct phases: first verification element for identity authentication, second verification element for transaction authorization. Each verification element is independently validated against specific blockchain records, allowing multiple parties to verify different aspects without requiring all parties to review all information.
Solution Approach 2:
The blockchain network serves as an intermediary that stores verification elements and enables all parties to independently verify claims without direct coordination. The distributed ledger acts as a trusted mediator that all parties can query and validate against, reducing the complexity of multi-party coordination.
3Reliability
If extensive paperwork is required, then proof of claim verification is improved, but ease of operation and user convenience deteriorate
Solution Approach 1:
The patent uses electronic copying of verification elements from the claimant's device to the blockchain network. Instead of requiring physical documents, the system captures digital images or NFC data, creates cryptographic hashes, and stores these copies on the blockchain, enabling verification without physical paperwork while maintaining proof integrity.
Solution Approach 2:
The patent replaces manual paperwork handling with electronic capture and automated processing. Verification elements are captured via camera or NFC scanner, automatically converted to digital format, hashed for security, and stored on blockchain, eliminating the need for physical document management while improving verification reliability.
4Ease of operation
If traditional transaction recording is used, then ease of access to records is improved, but security and tamper resistance deteriorate
Solution Approach 1:
The patent replaces traditional centralized record-keeping systems with a distributed blockchain ledger. Transaction records are stored as immutable blockchain entries with cryptographic hashes, providing tamper resistance while maintaining accessibility through the distributed network. Parties can query the blockchain ledger directly without requiring centralized access control.
Solution Approach 2:
The patent performs preliminary hashing of verification elements before storing them on the blockchain. This preliminary cryptographic processing ensures that original data cannot be altered without detection, as any modification would change the hash value. The hashed records are then stored immutably on the blockchain, providing both security and accessibility.
Data Source
AI summary
A method and system for conducting and recording insurance claim transactions using blockchain is provided. The method comprises the steps of: receiving a first verification element from a claimant at an authenticated provider device of a provider; verifying an eligibility of said claimant at a financer and an eligibility of said provider at a provider network according to said first verification element and said provider device; receiving a second verification element from said claimant at said provider device, said second verification element being distinct from said first verification element; conducting said insurance claim transaction by triggering a transaction chaincode at said provider device according to said second verification element; recording an entry of said insurance claim transaction on a blockchain ledger of a blockchain system; wherein a hashed value of an irreversible hash of said first verification element and said second verification element is stored in a global ledger of said blockchain system, and said entry of insurance claim transaction is stored in a private ledger of said blockchain system only accessible by said financer and said provider network; wherein a proof of claim of said insurance claim transaction is collected from said provider device at the time said transaction chaincode is triggered.