Blockchain Insurance Policy Verification System
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Solution Overview
Problem
Conventional methods for verifying insurance policies are prone to fraud and forgery, as they rely on physical cards or digital copies, which are not easily verifiable in real-time and can be lost, leading to disruptions in the verification process.
Innovation Solution
A computing system utilizing digital certificates and blockchain technology to securely verify insurance policies, where a first computing device receives and validates a digital certificate, and a second device checks the blockchain network for revocation status, ensuring the policy's validity and integrity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical insurance cards or digital copies are used for verification, then the verification process is simple and accessible, but the system is prone to fraud, forgery, and loss with no real-time verification capability
Solution Approach 1:
The patent introduces a blockchain network as an intermediary between the insurance company and the verification system. The blockchain stores immutable policy data and revocation lists, acting as a trusted mediator that eliminates the need for complex centralized verification systems while providing real-time, fraud-resistant verification. The smart contracts on the blockchain automatically verify policy status without requiring direct interaction between insurance companies and verification entities.
Solution Approach 2:
The patent creates digital copies of insurance policies in the form of standardized data structures stored on the blockchain. These digital representations include policy identifiers, coverage details, and validity status that can be verified without accessing the original physical documents or complex databases. The revocation list serves as a copy of invalidated policies that can be quickly checked against current presentations.
2Reliability
If real-time verification is implemented using blockchain technology, then fraud and forgery are reduced, but the verification system becomes more complex
Solution Approach 1:
The patent segments the verification system into distinct functional components: (1) policy issuance and registration on the blockchain, (2) maintenance of revocation lists, (3) real-time verification queries, and (4) smart contract-based validation. This segmentation allows each component to be independently optimized and managed, reducing overall system complexity while maintaining high security standards.
Solution Approach 2:
The patent changes the fundamental parameters of the verification system by transitioning from centralized database queries to decentralized blockchain validation. This involves changing the data storage model from mutable to immutable, the verification mechanism from manual to automated via smart contracts, and the accessibility from periodic to real-time. These parameter changes simplify the operational complexity despite introducing new technological infrastructure.
3Measurement precision
If digital certificates are validated and revocation status is checked on blockchain, then the accuracy of insurance information is improved, but the verification time and computational resources increase
Solution Approach 1:
The patent implements preliminary action by pre-storing all policy data and revocation lists on the blockchain before verification is needed. When a verification request occurs, the system simply queries already-available data rather than performing complex real-time database searches or cross-referencing multiple sources. The smart contracts are pre-programmed with validation logic, enabling immediate verification without computational delays.
Data Source
AI summary
In one aspect, an example method includes (a) receiving, by a first computing device of a computing system for verifying an insurance policy, a digital certificate containing insurance policy details associated with an insurance policy; (b) receiving, by a second computing device of the computing system, from the first computing device, the digital certificate; (c) validating, by the second computing device, the digital certificate; and (d) verifying, by the second computing device, via a blockchain network, that the digital certificate has not been revoked, wherein the blockchain network contains a revocation list associated with the insurance company.