# Blockchain-Driven Generalization of Policy Management for Multiproduct Insurance Companies
## 3 Problem Statement  
### The Insurance Market: Policy Management  
When we talk about the insurance market, the most important element we deal with is the insurance policy. A policy is a contract between the policyholder and the insurance company. The policyholder may or may not be the insured party under the policy. This distinction introduces the concept of the insured, who is the person or object covered by the policy. Additionally, there is the figure of the beneficiary, who is the individual or entity that will receive the compensation, if applicable. In general, a policy can be composed of several key elements: the policyholder's information, the insured and beneficiary's details, and information about the object to be insured, such as a house, a car, or the insured person's life. Additionally, the policy includes a set of coverages and guarantees. These are essential components that define what is being insured and under what types of incidents or risks. For example, when insuring a home, we refer to content or structure coverage. In the case of automobiles, we have coverage options like glass breakage, theft, etc. For health insurance, coverage may include disability leave, surgery, and more. Another key concept is the premium. The premium refers to the annual or monthly cost of keeping the insurance contract in force. In the event of a claim, the insurance company will be responsible for making the necessary arrangements or providing compensation as outlined in the policy's coverages and guarantees. The price of the premium is calculated by taking into account various factors such as the policyholder's age, the age or condition of the insured asset, past claims, the place of residence, and other relevant criteria. Finally, it is important to review the dates of contract initiation, validity, expiration, and any modifications. Proper management of this information is crucial to ensuring the consistency of operations throughout the entire life cycle of a policy, particularly in the handling of claims. The most common way insurance companies manage policies from the moment of contract initiation is through batch processing. Each day, typically overnight, records from all possible company sources--such as online applications, branch offices, insurance brokers, etc.--are uploaded. The upload is usually performed at night to avoid potential impacts on operational systems. Finally, through automated processes, all policies are processed and validated before being finalized. The goal of this step is to confirm that the reported data aligns with the company's criteria. The implementation of the policy concept in these systems consists of three main elements: data acquisition, policy storage, and policy management. Data acquisition occurs in real-time through web forms at the point of contract initiation. Once the data are validated and the policy is approved, it is stored in a database system, typically a relational database. This allows for the creation of the data model containing all the information within the policy. Finally, additional systems are required for policy management, enabling the sharing and modification of all information. It is common to use APIs, web services, and batch processing systems to perform these tasks. The rapid evolution of the insurance market and the growing commercial relationships between different companies have highlighted the necessity to cover a broader spectrum of business. This has led companies that were traditionally focused on a specific type of insurance to expand their operations towards a multipolicy model. Today, companies no longer offer a single type of policy, such as auto, home, or health insurance, but can provide multiple types of products simultaneously. As a result, there is now a necessity for a management process adapted to this new data model, where a single customer may hold different types of policies. From a technological perspective, so-called Policy Administration Systems (PASs) are commonly used.