Blockchain Subrogation Using Sensor Data and Smart Contracts
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The insurance claim process, particularly subrogation claims following vehicle collisions, is lengthy and complicated due to the need for extensive communication and information exchange among various parties, often requiring third-party intermediaries, which increases costs and inefficiencies.
Innovation Solution
A blockchain-based system utilizing historical and current sensor data to determine fault percentages and facilitate subrogation processes through machine learning algorithms, smart contracts, and evidence oracles, enabling secure, transparent, and automated transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional insurance claim processes are used, then information exchange between parties can be conducted through standard communication channels, but the process becomes lengthy and complicated requiring multiple intermediaries
Solution Approach 1:
The patent introduces a blockchain-based system that acts as a new intermediary layer between insurance parties. The blockchain provides a decentralized communication and data exchange platform that eliminates the need for traditional intermediaries (adjusters, brokers, manual processing systems) while maintaining secure information exchange. This resolves the contradiction by providing a more efficient intermediary solution that reduces complexity and increases productivity.
Solution Approach 2:
The patent replaces manual mechanical claim processing systems with an automated blockchain-based electronic system. Smart contracts automatically execute claim evaluations, and the blockchain's distributed ledger automatically tracks and verifies all transactions and data exchanges between parties. This substitution of mechanical manual processes with automated electronic systems directly increases processing speed while reducing the number of human intermediaries required.
2Measurement precision
If extensive communication and information exchange are conducted among various parties, then comprehensive fault determination can be achieved, but the process becomes lengthy and costly
Solution Approach 1:
The patent implements preliminary actions by pre-establishing smart contracts that automatically execute when collision data is submitted to the blockchain. These contracts contain pre-programmed logic for fault determination that immediately processes the information without requiring lengthy subsequent communications. The system also pre-organizes data structures for collision information, enabling rapid extraction and analysis of relevant fault-determining data from sensor inputs.
Solution Approach 2:
The patent replaces manual analytical processes with automated blockchain-based evaluation systems. Smart contracts automatically analyze collision data, determine fault percentages, and execute subrogation calculations without human intervention. The blockchain's transparent and immutable record-keeping automatically tracks all information exchanges, eliminating the need for lengthy verification communications while maintaining comprehensive fault determination accuracy.
3Reliability
If third-party intermediaries are used to facilitate subrogation negotiations, then claim resolution can be achieved, but costs increase
Solution Approach 1:
The patent implements self-service by enabling the blockchain system to automatically resolve claims through self-executing smart contracts. The system autonomously evaluates collision data, determines fault percentages, calculates subrogation amounts, and executes payments without requiring third-party intermediaries. This self-service capability maintains reliable claim resolution while eliminating the costs associated with traditional intermediaries such as adjusters, brokers, and manual processing fees.
Solution Approach 2:
The patent substitutes manual intermediary-based claim resolution with an automated blockchain system. Smart contracts automatically perform all subrogation negotiations and resolutions that previously required third-party involvement. The blockchain's transparent and immutable nature provides the reliability of human-mediated resolution while the automated execution eliminates intermediary costs, directly reducing energy loss and processing expenses.
Data Source
AI summary
Systems and methods are disclosed with respect to using a blockchain for managing the subrogation claim process related to a vehicle accident, in particular, utilizing historical data related to a vehicle or vehicle collisions as part of the subrogation process. An exemplary embodiment may include receiving historical sensor data, such as image, audio, telematics, and/or autonomous vehicle data, associated with a past vehicle collision; inputting the historical sensor data into a machine learning program to determine data relevant to a past vehicle collision; receiving current sensor data associated with a current vehicle collision; inputting the current sensor data into the machine learning program to determine data relevant to the current vehicle collision; and determining a percentage of fault of the vehicle collision for one or more autonomous vehicles, autonomous vehicle systems, and/or drivers based upon, at least in part, analysis of the historical sensor data and the current sensor data.