# Blockchain-Driven Generalization of Policy Management for Multiproduct Insurance Companies
## 1 Introduction
Blockchain provides a comprehensive and decentralized structure that eliminates data and process duplication by allowing all parties to access a single source of information. In this model, all information is inserted, queried, and modified in the distributed ledger, ensuring integrity, immutability, and ease of verification. * Difficulty in scaling operational processes: The need to incorporate new products into the insurer's portfolio, especially in environments with multiproduct policies, presents significant challenges. For example, if a company manages life, automobile, and health insurance and wants to address the current issue with electric scooters by adding a specific policy for this modality, it may require substantial changes affecting both the system's core and third-party applications and systems. Blockchain, combined with the proposed policy standardization, enables efficient scaling through the use of Merkle trees as an anchoring mechanism and smart contracts that automate policy management. This approach ensures that the addition of new products does not compromise the system's integrity or efficiency, and that information already stored remains intact under any circumstances. Furthermore, this model contributes to reducing operational and maintenance costs by lowering the technical complexity associated with product expansion and data management. * Data inconsistencies between systems: Insurers and third parties often manage different versions of the same information, leading to inconsistencies. For instance, it is common to find discrepancies in data such as dates, premium amounts, or customer details across various participants in the process. Blockchain ensures that all parties have access to the same synchronized and verifiable data, preventing errors or discrepancies that could lead to legal or financial consequences. * Operational efficiency: Stemming from the issues mentioned above, traditional systems can experience efficiency problems, leading to higher maintenance costs, operational overload, delays, incidents, and more. These problems often affect customer service, resulting in complaints and claims with potential reputational impact. With the proposed solution, we aim to create a more efficient system that optimizes operational times. The inclusion of Merkle trees and the use of smart contracts provide improvements in data verification and retrieval, which is the most frequent operation in such systems. For this purpose, a prototype has been built as a proof of concept based on a private Ethereum network using Hyperledger Besu for transaction management and Tessera to ensure privacy in sensitive transactions. This framework offers a decentralized, scalable solution that reduces redundancies, enhances fraud prevention, and ensures consistency across all entities managing multiproduct insurance portfolios. To summarize, we make the following contributions:  
* First, standardization of the policy model is carried out, allowing the same insurance company to manage multiple types of insurance simultaneously. * Following this, a blockchain architecture is proposed, analyzing its advantages and determining the characteristics it must possess to effectively handle these multipolicies. * A Merkle tree-based anchoring protocol will be presented, enabling the integration of the standardized model into the blockchain. Additionally, it will facilitate the precise verification of changes made to the data. * Finally, a prototype has been developed to enable a proof of concept for the creation of multiproduct policies in a simulated environment. This prototype aims to demonstrate the ease and efficiency of generating different types of insurance products quickly and seamlessly. The article is organized as follows: Section 2 describes existing studies and applications of blockchain in areas related to the insurance sector. Section 3 outlines the problem statement, focusing on the current policy management model in the insurance market.