Hybrid Blockchain Technology Adoption to Enhance Transaction Transparency in the Insurance Industry

The insurance industry is a collection of service companies that provide protection services to customers in accordance with contracts and agreements. Conventional insurance systems do not provide transparent and valid information for customers during the premium payment and claim submission process, which can lead to potential data manipulation by customers and miscalculation of refunds by insurance companies. Therefore, this study aims to apply blockchain technology to the insurance industry as a whole, enhancing the transparency of insurance transactions and reducing data manipulation and transaction errors. This study produces a proposal for a hybrid blockchain model for insurance. A hybrid blockchain is a combination of a private blockchain and a public blockchain. Private blockchain integrates insurance companies and business partners. A private blockchain stores customer privacy data to enhance its security. Customers utilize the public blockchain to retrieve insurance details like premium payments and claims from the private blockchain. This study employs a qualitative approach, utilizing a comprehensive literature review, to investigate the phenomena and issues related to the claims and refund process within the insurance industry. The literature review also explores the benefits of blockchain technology as a potential solution for the insurance industry. The study's novelty lies in its proposal for a model and simulation that utilizes blockchain technology to enhance transaction transparency with Ganache.