Smart Contracts, also known as "Acuerdos Inteligentes" in Spanish, are code bits that are 100% created, stored, automated, and digitally signed. They follow simple if this then that logic, which makes some people equate them to the most traditional logic of the legal system processes. Thus, they can be used to complement a legal contract between people.
Unlike analog contracts, which rely solely on paper, Smart Contracts are encoded in computer language -use our app to try them with your pdf contract!-, and their terms are stored and transferred using blockchain technology. This data structure ensures the authenticity of the information because both parties were aware of the agreement throughout the process, making transactions between them secure and reliable thanks to the technology involved in this process. The automation of legal agreements enables the notification of acquired responsibilities to the involved parties, the execution of agreement terms, as well as the optimization of significant financial resources and time. Their implementation and benefits for commerce are virtually limitless due to their versatility and ease of application. One of the sectors that has harnessed these benefits in the region is the insurance sector, which has found an ally in Smart Contracts to streamline processes, reduce costs, and enhance the user experience.
Brokers and insurers around the world have started using these digital tools to provide better service and, in turn, reap benefits for their companies in various areas. This is possible because, in addition to contracts, legally valid agreements such as forms, consents, authorizations, and more can be created digitally. Many have even made legally valid documents accessible on their platforms so that users can simply fill in the templates with their data and initiate processes according to their needs with a single click.
Since Smart Contracts are a combination of conditions and actions, known as "if-then" logic, automation becomes much simpler. For example, if a customer requests the annual renewal of their contract, the platform automatically renews the document for another year.
These actions greatly contribute to improving the services provided by insurers and brokers. They have found significant benefits for their businesses and clients, which are detailed below.
Smart Contracts automate this entire process. Users can submit the necessary documentation 24/7. Insurance companies can verify the documentation and calculate refunds or discounts in real-time.
This allows for greater efficiency in both service and resource utilization. By providing their employees with automation tools, insurers and brokers have increased their responsiveness in contracting new clients and in the execution of coverages, claims, and other processes.
Smart Contracts have become an ally in managing a larger volume of clients without the need to increase staff, financial resources, office space, or supplies.
Smart Contracts shorten response times, resulting in trust, customer loyalty, and automatic contract renewals. Customers can easily renew their contracts in a few steps, creating a win-win situation.