# Blockchain-Driven Generalization of Policy Management for Multiproduct Insurance Companies
## 1 Introduction
Similarly, in 2023, Aviva, one of the most prominent British insurers, experienced a security breach that compromised the personal information of its customers. Given the importance of the insurance industry in the social and economic spheres, it has frequently been the focus of study and improvement through the application of various technologies over the past few decades. A survey of these applied technologies can be found in ([PERSON] et al., 2018), with one of the most recent and notable being the application of blockchain technology. The overall objective of this work is to provide solutions to the most frequent and significant issues encountered in the current insurance market management. These problems include:  
* Ensuring document integrity to avoid litigation and manipulation in processes, a particularly serious issue in claims and legal proceedings. For example, there are cases where the insurance company holds a different document than that provided by an external collaborator, as occurred in Corbin & King Ltd. vs AXA Insurance UK Plc in 2022, where discrepancies arose between the documents submitted by the parties regarding coverage under the NDDA (Denial of Access) clause in their policies. Such cases typically end with an expert review in court to determine liability in a claim. To address this challenge, blockchain technology has positioned itself as a suitable tool due to its ability to ensure data integrity through immutable and auditable records, as demonstrated in existing literature. * Fraud management occurs when documents are manipulated, discrepancies arise between data in different systems, or there is a lack of transparency in third-party operations. Blockchain addresses these issues by immutably recording each transaction. For example, a common type of insurance fraud involves altering policy data, filing a claim by exploiting discrepancies in cancellation or expiration dates, or a provider inflating the amount on an invoice. With blockchain, such alterations would be impossible without detecting a discrepancy in the blockchain, thanks to automated verification mechanisms provided by smart contracts. * System and data security. Traditional systems can be vulnerable to attacks that compromise the integrity and privacy of information. In contrast, blockchain distributes data across multiple nodes, meaning that attacking a single node would not compromise the entire system. This provides greater resilience against attacks and prevents data theft or manipulation. Furthermore, in blockchain--and with the proposed solution using Merkle trees to model the standardized policy--the sensitive data are protected through hashing, and privacy is ensured by encryption mechanisms. * The importance of data in the insurance sector is critical. While a company may operate with redundancies in its processes, it can face serious issues if data are lost or manipulated. For instance, if an external provider holds a set of data that does not match the insurer's records, it can lead to conflicts resulting in costly litigation and reputational damage. With blockchain, such problems are avoided, as all participants have access to the same verified information with no possibility of manipulation. Once the general issues of the sector have been reviewed, it is also necessary to identify the specific technical challenges that are frequently encountered in the management of policies and insurance processes. Among these, the following stand out:  
* Data and process redundancy: Traditional systems operate with multiple workflows containing redundant data, which leads to high maintenance costs and significant technical complexity, particularly when scaling the solution. For example, customer information is often replicated across all external systems involved. Additionally, there are fragmented processes across systems or departments performing the same function, such as data input or transmission.