The solution allows cryptocurrency holders to buy Compulsory and Kasko car insurance digitally, directly on the LAQO website. The cryptocurrency payment process goes through Electrocoin’s electronic payment service PayCek, which also adds a layer of security for customers.
The LAQO webshop currently supports thirteen different cryptocurrencies, including stellar lumen (XLM), DAI, tether (USDT), USDC, binance USD (busd), saltwater (SOL), dogecoin (DOGE), litecoin (LTC), bitcoin (BTC), bitcoin cash (BCH), ether (ETH), ripple (XRP), and EOS.
According to Croatia osiguranje officials cited by total-croatia-news.com, LAQO is the first insurance company in the Republic of Croatia to introduce payment with cryptocurrencies, all in an effort to provide a streamlined shopping experience for its users. Apart from this crypto-focused service, the company has also launched a digital platform named LaqoPrevent, which uses telematics technology to promote responsible behaviour while on the road.
How does the crypto payment system work?
Users are given the option to use their digital assets as payment options at the end of the insurance purchase, where a list of available cryptocurrencies is provided.
The next steps involve choosing the crypto payment option, accepting the terms and conditions, choosing the desired cryptocurrency and entering an email address. The system displays the sum in kuna equivalent and provides the customer with a QR code that can be scanned with a crypto wallet.
Once the payment is complete, the customer receives a confirmation via the provided email address.
Blockchain benefits and applications in the insurance industry
According to builtin.com, the insurance industry is facing numerous issues including inefficiency, human error, and fraud, all of which can be mitigated by blockchain implementations. Furthermore, blockchain can influence the future growth of the insurance industry by leveraging its public ledgers and fortified cybersecurity protocols in order to create trust.
The same source states that blockchain can optimise the efficiency, security and transparency of the insurance industry. For instance, distributed ledger technology has beneficial applications for streamlining insurance claims processing, speeding up payment times, and improving cybersecurity protocols.
Smart contracts, which can track insurance claims and hold both parties accountable, could allow blockchain users to transparently transfer anything of value without the interference of a middleman.
When it comes to cybersecurity, the same source emphasises that blockchain ledgers are decentralised, which means they can’t be corrupted or manipulated by a single entity. Instead, all data is chronologically timestamped to provide a clear recording of events.
While the data in question is encrypted, it’s also transparent to nodes on a chain, which means that all nodes can view the actions of an individual without knowing his identity. This way, the system can detect unusual behaviour quickly and take care of problems proactively before they have a chance to get worse.