Since its inception, Bitcoin and blockchain technology have created an undeniable revolution in various industries. In recent years, the insurance industry is one of the areas that has been able to benefit from the benefits of blockchain and digital currencies. Problems such as the high price of insurance services and not supporting many medical expenses and the time-consuming process of paperwork necessary to pursue medical services make the many advantages of blockchain technology more prominent in this space.
The new technology of blockchain and bitcoin can transform the world of insurance and medical services. Easing the transfer of money, network transparency and the possibility of tracking transactions, eliminating middlemen’s fees, and most importantly, the lack of a single and centralized institution to respond to the medical needs of citizens, are just some of the important factors of using blockchain technology in this industry. Blockchain can allow applicants to receive insurance services to seek help from each other in a peer-to-peer network without the need for third-party regulatory bodies to pay for heavy treatment costs.
In this article, citing an article Published on the Bitcoin Magazine website, we will take a look at the role of Bitcoin and blockchain technology in outsourcing insurance services. What we analyze is the concept of “crowdsourcing” or “outsourcing to the crowd”. In other words, we want to explore how people can meet the need to finance medical expenses in a decentralized, peer-to-peer insurance network using Bitcoin and other digital currencies. For this purpose, we will examine issues such as increasing people’s access to insurance services, the impact of Bitcoin-based crowdsourcing on policyholders and insurers, increasing public awareness about medical services, and methods of using Bitcoin in the insurance industry. We suggest not to miss reading this interesting article.
The impact of Bitcoin and crowdsourcing on people’s access to insurance coverage
Before starting the discussion, it is better to clarify the concept of “crowdsourcing”. In general, crowdsourcing means dividing tasks between a large number of people and institutions. In the field of health insurance, crowdsourcing refers to a network of people who help each other without the need for a centralized institution to pay for treatment. This work can effectively reduce the cost and fees of intermediaries and the time required to carry out administrative processes.
A strong correlation between Bitcoin and Crowdsourced insurance There is. Bitcoin’s unique features can increase the efficiency of insurance crowdsourcing for both patients and insurance companies. To understand the impact of crowdsourcing insurance coverage and how it relates to Bitcoin, consider the example below.
Imagine facing exorbitant costs in the process of treating a difficult disease. In this case, going through the administrative erosion process to prove medical documents and some problems that insurance companies put in front of you to cover costs will only add to your problems. In addition, crises such as the Covid-19 pandemic revealed the importance of addressing these problems more and more.
In such situations, crowdsourcing allows you to ask others to help you pay for the treatment. Websites likeGoFundMe» For crowdsourcing, such cases have been set up to facilitate the provision of medical expenses for users.
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It is interesting to know that until today, at least 50 million Americans have helped others to pay for their medical expenses in these networks. In addition, financial crises and the lack of responsiveness of various third-party institutions around the world have made people more than ever want to use crowdsourcing to receive medical services exactly when they need them.
Meanwhile, Bitcoin can be a game-changer by improving access to insurance coverage. In addition, decentralized blockchain technology can also promote the development of a new health service system that is accessible and affordable to all. Also, Bitcoin can have many benefits for patient-centered healthcare services, which is a favorable option for the insurance industry.
Reasons why insurance companies need Bitcoin and crowdsourcing
Insurance companies can also benefit from the benefits of crowdsourcing and the application of blockchain technology. These companies try to receive their insurance premiums on time and satisfy their customers regarding the coverage of care plans. Bitcoin can fulfill both goals for insurance companies.
Currently, Bitcoin is quickly becoming an essential tool for insurance companies; Because it opens a new door to better relationships with customers. Insurance companies can accept Bitcoin payments from customers who use crowdsourcing to cover their medical expenses.
This allows customers to make payments with Bitcoin and other blockchain methods. The good news for insurance companies is that the Bitcoin payment option gives early adopters of blockchain technology a competitive advantage in the industry.
Needless to say, using a secure network like Bitcoin helps insurance companies to be more resistant to cyber attacks and data breaches. Insurance companies are one of the big targets of cyber-attacks, and in addition to securing payments, Bitcoin helps these companies track payments.
The role of Bitcoin in increasing people’s awareness compared to medical services
People tend to get the most services from health plans. Meanwhile, insurance companies also want to increase their customers’ knowledge about their coverage services. The combination of Bitcoin and crowdsourcing can increase people’s awareness of health and medical services both on an individual and professional level.
In a crowdsourcing campaign, people can understand why the applicant is seeking medical assistance. Also, they can learn about different diseases and their treatment costs. Participation in these campaigns helps users to decide to participate in crowdsourcing with more and clearer information. Then, if anyone wants to help, they can quickly and easily use Bitcoin to participate in this collective process.
In addition, insurers can also benefit from crowdsourcing campaigns to better understand and diagnose the insurance needs of their customers. If an insurance company realizes that customers are frequently using crowdsourcing to pay for certain health care services, it can modify and upgrade its plans accordingly.
Also, if an insurer realizes that its customers use crowdsourcing for services that are covered by this company, it can contact them and offer its services under more favorable conditions if needed.
First steps to finance medical expenses with Bitcoin
Bitcoin can help people cover their medical expenses in several ways. People can also participate in insurance crowdsourcing campaigns seamlessly and securely using Bitcoin.
Bitcoin payments can help people in need pay for their medical expenses. Bitcoin extends these donations beyond geographic boundaries, and people around the world can participate in medical aid campaigns internationally.
If you are also suffering from heavy medical expenses, setting up and requesting a crowdsourcing campaign can be a good option. By accepting Bitcoin as part of your campaign, you can get donations from a wider range of people.
Before starting a fundraising campaign for your medical bills, learn as much as you can about the crowdfunding process. If you enter such a campaign, it is better to be honest with people and provide the necessary and sufficient information about the conditions and reasons for your request. After that, you can also add the option of Bitcoin payments to your campaign.
Also, you can contact your insurance company to allow them to accept Bitcoin payments. As Bitcoin adoption increases, many insurers and their customers can take advantage of this peer-to-peer blockchain network. The success of companies such as “CrowdHealth”, which are considered leaders in the field of crowdsourcing and the use of Bitcoin payments, clearly shows this issue.
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Bitcoin allows insurers to minimize the risk of cyber attacks and be more flexible in interacting with their customers. Since insurance companies are also gradually realizing the benefits of Bitcoin and its use in crowdsourcing campaigns for medical expenses, we will probably see an increase in the willingness to accept Bitcoin. This trend could eventually make Bitcoin one of the common payment options in the daily operations of insurance companies.
In this article, we briefly explained the concept of crowdsourcing in the insurance industry and said how the use of Bitcoin can increase people’s access to insurance services around the world. Also, we talked about how the integration of Bitcoin and crowdsourcing could benefit policyholders and insurers. In the continuation, we took a look at the issue of increasing people’s awareness of medical services in decentralized campaigns to provide medical assistance and finally, we reviewed the first steps that can be taken in this direction.
Currently, many people covered by insurance companies complain about high premiums, lack of support for some medical services, difficulty in providing sufficient documentation to insurers, and unfair billing practices. To solve this problem, a social network of people can be formed to get more credit for their medical expenses in exchange for helping their peers. In other words, compared to relying solely on the support of centralized institutions such as insurance, crowdsourcing can be a completely different approach to health care and an efficient alternative to current health insurance schemes.
The goal of crowdsourcing treatment costs using Bitcoin is to eliminate administrative paperwork and middlemen’s fees, and people can receive medical assistance faster and cheaper in a global network. However, we should not forget that despite the actions taken so far in some projects, including the “CrowdHealth” company, the insurance industry has not yet used crowdsourcing campaigns and digital currencies on a large scale. Therefore, the only way to measure these measures is to examine the effects of the aforementioned technology in wider statistical societies and to evaluate the willingness of users to use insurance services based on crowdsourcing and Bitcoin.