Evidence Oracles for Blockchain Vehicle Subrogation Claims
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Solution Overview
Problem
The insurance claim process, particularly subrogation claims, is lengthy and complicated due to the need for multiple parties to exchange and verify information, often relying on third-party intermediaries, which increases costs and time.
Innovation Solution
Utilizing a blockchain with evidence oracles and machine learning to manage subrogation claims, where data from various sources is collected and analyzed to determine fault, suggest amounts, and facilitate negotiations through a decentralized ledger system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional third-party intermediaries are used to validate information and facilitate communications between insurers, then information verification and dispute resolution can be achieved, but the process becomes lengthy, complicated, and more expensive
Solution Approach 1:
The patent extracts the intermediary validation function from the traditional claims process and replaces it with a blockchain-based evidence oracle system. Evidence oracles are deployed to directly collect and verify data from sources (police reports, repair shops, weather services) and write validated information to the blockchain ledger, eliminating the need for third-party intermediaries to manually verify information while maintaining reliability.
Solution Approach 2:
The patent introduces a new type of intermediary - the evidence oracle - which is a decentralized, automated system that mediates between data sources and the blockchain. These oracles validate information programmatically and write it to the distributed ledger, providing reliable verification without the lengthy manual processes of traditional intermediaries.
2Measurement precision
If multiple parties exchange and verify information through traditional channels, then comprehensive fault determination can be achieved, but the process becomes complicated and costly
Solution Approach 1:
The patent segments the fault determination process into independent, modular components: evidence collection by specialized oracles, data validation through smart contracts, and consensus-based fault assignment. Each oracle type (police report oracle, repair shop oracle, weather oracle) handles specific data sources independently, reducing overall process complexity while maintaining comprehensive verification.
Solution Approach 2:
The patent replaces manual information exchange and verification mechanisms with automated blockchain-based systems. Smart contracts automatically execute validation logic, and the distributed ledger provides immutable record-keeping, eliminating complicated manual processes while improving measurement precision through systematic verification.
3Ease of operation
If third-party intermediaries handle subrogation negotiations and resolution, then dispute resolution can be facilitated, but additional expenses are incurred
Solution Approach 1:
The patent implements self-service through automated smart contracts that facilitate subrogation negotiations and resolutions without human intermediaries. The system automatically compares evidence from multiple oracles, applies validation rules, determines fault based on predefined criteria, and executes payment transfers, enabling the system to serve itself without incurring intermediary expenses.
Solution Approach 2:
The patent changes the operational parameters of dispute resolution from manual, intermediary-dependent processes to automated, algorithm-driven processes. By changing how validation, negotiation, and resolution are performed - from human-mediated to code-executed - the system maintains ease of operation while eliminating the costs associated with third-party intermediaries.
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 collision, in particular, utilizing evidence oracles as part of the subrogation process. An exemplary embodiment includes receiving recorded data from one or more connected devices at a geographic location; analyzing the recorded data, wherein analyzing the recorded data includes determining that an collision has occurred involving one or more vehicles; generating a transaction including the data indicative of the collision based upon the analysis; and transmitting the transaction to at least one other participant in the distributed ledger network.