# Blockchain-Driven Generalization of Policy Management for Multiproduct Insurance Companies
## 3 Problem Statement
### Blockchain  
We need an architectural model that allows us to eliminate the potential duplications and inconsistencies mentioned earlier. The approach we will take involves using Blockchain as the central core of the architecture. By leveraging this technology, we can integrate all processes and information management into a new decentralized architectural model, where all participants will have access to the same information.  
A Blockchain solution applied to this business model can provide a swift response to various issues identified:  
* Duplication of processes: By incorporating Blockchain as the central axis of the solution, all network participants can interact consistently using the same tools. This eliminates the necessity for proprietary infrastructure at each entity, resulting in cost savings and improved efficiency in administration, management, and processing.
* Information Privacy: By reducing the number of processes and necessary infrastructure, the likelihood of attacks on service availability or unauthorized access to data are also minimized. Furthermore, only authorized members of the network will have access to it, enabling them to perform transactions and interact with smart contracts.
* Data Duplication: Each participant in the network holds a copy of the distributed ledger where all information is recorded. This eliminates the necessity for components such as APIs or web services to manage this data. Entities will focus solely on managing and storing information on the blockchain. They will now access data remotely and securely, ensuring that information is not skewed or inconsistent across different systems, as they will all share the same copy of the data.
* Validation Issues and Interactions: By utilizing smart contracts, we can model the concept of insurance policies and the specific operations of the insurance business. This will enhance validation criteria, risk assessment, and report generation. Blockchain enforces consensus on these criteria, as all participants operate within the same network, ensuring uniformity. Smart contracts enable the definition of different states a policy and its associated claims go through, governed by a set of rules. These contracts can even be triggered automatically when certain events occur, simplifying the establishment of business-related rules.
* Permissions and Certificates: Given that the information model is distributed, each participant in the process can access different levels of information based on their access permissions. Digital certificates can be employed to ensure a high level of privacy, reduce errors in data handling, and improve fraud prevention efforts.  
Additionally, Blockchain inherently possesses two crucial characteristics for the secure management of insurance policies.  
* Consensus: This can be used to define the conditions under which a new client can purchase a policy, make changes to it, file a claim, or initiate a loss adjustment request. This is an automatic mechanism involving all system participants, significantly reducing the number of validations, processes, and communications required between stakeholders.
* Immutability: This is a standout feature of Blockchain. Once a transaction is added to the chain, it cannot be altered. Modifying an already recorded transaction requires a new transaction, with both being recorded. This ensures data integrity at all times, effectively eliminating information inconsistencies across different systems.