# Blockchain-Driven Generalization of Policy Management for Multiproduct Insurance Companies
## 4 Solution Approach  
This section outlines the proposed solution for managing policies in a multi-insurance company through the use of a private Blockchain network, leveraging the advantages of a Merkle tree-based implementation. Once again, a use-case-based methodology [20] has been adopted to analyze the project requirements. Based on this analysis, the following functional and non-functional requirements have been defined. This methodology has been essential in selecting the functional and non-functional requirements of the proposed solution. These use cases were identified through a detailed analysis of the various interactions between the insurance company and the other participants in the system: departments, clients, and third parties. From this analysis, the different necessities and specific challenges of these types of technical systems were extrapolated. This ensured that the requirements addressed real-world operational processes and the technical necessities to effectively integrate blockchain technology. For example, the policy creation requirement arose from the necessity to standardize data across different insurance lines, as identified in the policy management use case. This led to the integration of Merkle trees and the use of smart contracts to generalize policies, ensuring consistency and reducing operational complexity across multiple products. Similarly, the requirement for blockchain network registration stems from the necessity for decentralized data management, ensuring that all relevant information about policies and claims is securely stored and accessible to authorized users on the blockchain, as highlighted in the claims submission and damage assessment use cases. The management of roles and permissions was established based on the necessity to securely manage the various actors involved in the insurance process: insurance companies, policyholders, and external service providers. This requirement ensures that each actor has the appropriate level of access to interact with the system, perform specific tasks, and execute smart contracts based on their role within the infrastructure. Additionally, non-functional requirements, such as system scalability and security, were driven by the necessity to handle larger loads and maintain data integrity as the system scales. These necessities were emphasized by the complexity of managing multiple interactions in various use cases, from policy issuance to claims settlement, where operational efficiency and security are paramount. This approach ensured that the proposed solution was based on real-world practical necessities while also providing a clear roadmap for developing a scalable, flexible, secure, and efficient system. The functional requirements are:  
* User Management: The system must manage users involved, including the insurance company, policyholders, and third parties (e.g., processors, repairers). There should be a process for registering and authenticating these users within the system. * The solution provides a decentralized system that allows user authentication through smart contracts, ensuring that only authorized users can access and operate within the blockchain network, guaranteeing data integrity and security. * Policy Creation: A standardized data model is required, utilizing smart contracts to generalize policies related to different insurance lines. * The solution provides standardization of policies through Merkle trees and smart contracts, which facilitates efficient management of multi-product policies and eliminates duplication of data and processes. * Blockchain Network Registration: The information for each policy will be stored on the Blockchain network, providing a decentralized record of all information accessible to all system participants. * The solution provides a decentralized ledger on the blockchain that ensures data consistency and eliminates duplication, ensuring that all participants access a single source of truth.