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Insurance is one industry that’s being disrupted by blockchain technology on a near-weekly basis.

The latest entrant? Kasko2Go — a blockchain technology-based car insurance startup with a unique trick up its sleeve: military-grade anti-fraud technology that the company says goes way beyond insurance fraud detection.

“Our anti-fraud system is based on a platform called GetmeIns, designed by Click-Ins, which is a subsidiary of Kasko2Go,” the latter’s CEO, Genaldi Man, told me. “We address insurance fraud as a moving target. To deal with a moving target, you always have to be few steps ahead — not just to react to it, but also to make it possible to predict it.”

So how does it work? The solution creates a digital fingerprint of the vehicle that is used whenever a claim is processed.

“GetmeIns technology generates building a unique digital signature of damage based on a single picture of the damage or a set of images — similar to the fingerprint technology used in criminology,” Man said. “These signatures can be matched to any baseline — either historical accident pictures or any third-party pictures associated with the same accident. Insurers will know if particular damage has already been seen or claimed … or if it has a new origin.”

That’s significant because, while estimates vary, the Coalition Against Insurance Fraud puts the cost of fraudulent claims in the U.S. in the range of $80 billion every year.

“We believe as our technology is adopted by insurance, any manipulations with crashed parts in motor claims will be significantly reduced or even completely cut off,” Man said. “This is going to bring huge savings to insurance companies by automating the claim settlement process and eliminating fraudulent claims.”

The system doesn’t just take into account the digital fingerprint of the vehicle; it uses multiple data sources to predict fraud in advance.

“To know the customer, the platform creates a fusion from multiple data sources, such as open sources (usually referred to as Open Source Intelligence), historical customer records in the insurance industry, behavioral analytics, and more,” Man said. “We provide the insurance company with a Possible Fraud Engagement Score (PFES) associated with that particular customer.”

So how will blockchain technology play a role in the future of the insurance industry, and how does it help Kasko2Go, in particular?

“The blockchain is the universal notary service for all the insurance industry, which is capable of eliminating huge losses caused by fraud and double claims,” Man said, “Transactions become instant and cheap due to the rejection of a large number of counterparties and the replacement of complex infrastructure. Previously, it could take several weeks from the insured event to make a payment, but now it’s done in minutes.”

As you might expect, smart contracts play a role in making sure the transaction happens as quickly as possible.

“The logic of concluding an insurance contract and processing events becomes transparent, thanks to smart contracts,” Man said. “The insurance company is incapable of changing the conditions after the contract has already been concluded. Thus the entire insurance cycle becomes transparent. Blockchain makes it possible to simply and effectively implement this functionality.”

The startup currently consists of three distinct divisions. The first is the scoring department, led by Dmitry Bakutin. The second is the fraud detection solution, developed in Israel by Click-Ins. The third division is based in Switzerland and deals with the business and technology management.

“By combining these three points, we create unique technological processes in the insurance business, based on the blockchain, which aims to decentralize the insurance business completely,” Man said.

So what does the future hold for Kasko2Go, which starts a pre-ICO event on March 19, 2018, moving into a full ICO on April 2, 2018?

“The technology that is being created in Israel will be offered as a service for insurance companies in Europe,” Man said. “Our best reward so far is that one of our technologies was recognized by Google. It gave us the opportunity to get data from 3 million drivers, which is a huge advantage.”

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