USAA, State Farm Testing Blockchain Technology
June 28, 2019—State Farm and the United Services Automobile Association (USAA) are working on blockchain technology to automate parts of the auto insurance claims handling process, according to Insurance Business.
The joint test platform will allow both insurance firms to conduct scheduled payments, aggregate total payments and calculate net balance.
The platform also simplifies the subrogation process, by accumulating the balance of payments between the insurers; and it enables regular separate payments. According to State Farm innovation executive Mike Fields, the total amount delivered by all insurance carriers via the subrogation process was over $9.6 billion in 2018 alone.
Such a large volume requires extensive time and resources to complete the transactions, he noted.