
Blockchain technology has the ability to transform the insurance industry with fast, verifiable data exchanges and greater transparency. That’s great news for marine insurers and shippers, which suffer from the unpredictability of the weather and expensive guesswork. The benefits of blockchain technology in reducing risks for marine insurance include:
- Better Documentation
- Automation for Reporting
- Faster Response Times
- Stronger Connections
- Data Validation
- Building Greater Trust
- Value-Added Services
- Innovative New Value Chain
- Better Underwriting
Blockchain and Indirect Tax Considerations
Professionals in all fields are considering blockchain applications to streamline their businesses and manage indirect taxes. Questions that arise include the following:
- Can blockchain remove the need for invoices?
- Will greater transparency result in customs declarations being filed by container ships instead of customs brokers?
- Might government taxing authorities use cryptos to collect and refund value-added taxes, known as VAT?
- Can companies automate indirect tax calculations?
- Can businesses integrate indirect taxes with other accounting systems?
Shipping Companies Can Reduce Insurance Premiums
The final analysis of blockchain technology rests on the potential savings in insurance premiums. Insurance companies insure shippers for hundreds of millions of dollars each year, and blockchain tech can radically transform the industry by making it possible to streamline premiums and expedite claims processes for big savings. Securing streams of data prevents all types of insurance fraud and ensures a more shipper-friendly environment for global trade.
Underwriting Simplicity
Blockchain offers many ways for shippers -- and insurance companies -- to save money on administration, fraud and theft prevention and reductions in maritime risks. Find out more about okx markets and prices to realize how blockchain technology can reduce maritime risks. It’s easy to appreciate the benefits of updating classic marine insurance with beneficial blockchain technology.