A core tenet of insurance is the principle of utmost good faith. This legal doctrine declares that both parties in a contract of insurance have a duty to communicate honest and factually-complete information, especially pertaining to conditions outlined by a broker’s policies. The definition is inherently weak, because it hinges on faith, a notion which is highly exploitable. The current approach to circumvent the uncertainty of faith is through legal accountability. Most of us know that this is not an ideal solution. Fraudulent insurance claims steal over $80 billion annually. OLE-based water-tight smart contracts and compliance procedures do count.
A lot of similar businesses are lagging far behind when it comes to integrating new technology. Industry software can be quite incomplete and costly, and requires that everyone using it must learn a new system.