Blockchains Can Work for Car Insurance: Using Smart Contracts and Sensors to Provide On-Demand Coverage
- Resource Type
- Authors
- Valentina Gatteschi; Claudio Giovanni Demartini; Alfonso Gomez; Matteo Pelissier; Fabrizio Lamberti; Victor Santamaria
- Source
- IEEE Consumer Electronics Magazine. 7:72-81
- Subject
- Insurance fraud
Smart contract
Alphanumeric
Computer science
Hash function
020206 networking & telecommunications
02 engineering and technology
Computer security
computer.software_genre
Computer Science Applications
Human-Computer Interaction
Set (abstract data type)
Intelligent sensor
Work (electrical)
Hardware and Architecture
020204 information systems
On demand
0202 electrical engineering, electronic engineering, information engineering
Electrical and Electronic Engineering
computer
- Language
- ISSN
- 2162-2256
2162-2248
Blockchains and sensors installed on a vehicle could be combined to semiautomatically activate/deactivate car insurance coverage in an envisaged on-demand insurance scenario. We present a prototype that includes a mobile application (app) and a portable electronic device to be installed onboard. The mobile app lets the driver dynamically change the status of specific insurance coverage (in some cases, after pictures of the vehicle have been taken to attest to its conditions). Each modification and picture hash (a fixed-length alphanumeric summary of data content) are saved on the blockchain within a smart contract to certify changes made as well as the vehicle's status. Sensors embedded in the electronic device are used to collect passengers' and the vehicle?s data. Data are then used to automatically modify insurance coverage based on car/environment conditions and the preferences set. The proposed solution could help lower policy modification costs and limit insurance fraud.