Where Technology Meets Trust: How Blockchain is Humanizing Insurance
By Crypto.News – December 26, 2025
Insurance has long been perceived as an impersonal industry, where customers are reduced to mere data points and agents are seen primarily as sales conduits. This transactional approach has often left customers feeling disconnected, skeptical, and undervalued, obscuring the true purpose of insurance as a service designed to provide security and peace of mind. However, a new wave of innovation driven by blockchain technology promises to transform insurance from a cold, transactional business into a warm, trust-based partnership grounded in transparency, personalization, and shared value.
The Problem: Insurance as a Transactional Business
The traditional insurance model is straightforward but impersonal: customers purchase policies, pay premiums, and file claims when necessary. This process often lacks meaningful interaction, with minimal opportunity for trust-building or personalized service. Insurance agents tend to be viewed merely as representatives facilitating sales rather than as partners helping customers manage risk. The resulting disconnect fosters skepticism and erodes long-term engagement on both sides.
According to industry thought leaders, this model is fundamentally broken because it prioritizes transactions over relationships. Without transparency or mutual ownership, few incentives exist for either insurers or customers to cultivate ongoing trust.
Blockchain: A Path to Transparency and Personalization
Blockchain technology offers a compelling solution by enabling greater transparency and empowering customers with ownership of their insurance data. Rather than having insurers maintain exclusive control over policies and claims information, blockchain puts this data into the hands of customers themselves. This shift means policies can be tailored in real time to reflect individual behaviors or circumstances—such as verified safe driving records or home security measures—creating insurance products that truly match customer needs.
On the blockchain, updates to policies or claims status become instantaneous and fully transparent, eliminating confusion and delays that often plague traditional insurance. By actively involving customers in their coverage management, insurance transforms from a "black box" into an inclusive, trust-centered process.
Reshaping Incentives for Agents and Companies
Blockchain also promises to revolutionize how insurance agents are incentivized and engaged. Traditionally, agents work within fixed roles, compensated mainly through commissions, with limited influence over the company’s direction. Blockchain enables the issuance of digital tokens that represent stakes in the company’s ecosystem—not direct equity, but meaningful rewards tied to performance and contribution.
Through these tokens, agents become entrepreneurial stakeholders who benefit directly from the company’s success. Secure decentralized governance mechanisms allow them to vote on important decisions, propose innovations, and actively shape company policies. Smart contracts automate timely and fair compensation, empowering agents to act with motivation and autonomy akin to entrepreneurs.
This paradigm shift aligns the interests of agents with long-term company growth and fosters a culture of collaboration and purpose beyond simple sales metrics.
Building a Purpose-Driven, Value-Sharing Culture
The integration of blockchain in insurance supports a renewed focus on the true mission of insurers: protecting individuals and strengthening communities for the long term. Transparent tracking of contributions, customer satisfaction, and social impact enables companies to reward those who genuinely add value—not just in sales, but in fostering safety and trust.
Purpose-driven cultures grounded in shared ownership and transparent rewards encourage all stakeholders—employees, agents, and customers—to work collectively toward more sustainable outcomes. Celebrating positive impacts and distributing value inclusively reinforces trust and commitment across the industry.
A Vision for the Future of Insurance
As insurance evolves through blockchain innovation, it will increasingly emphasize human connection, transparency, and partnership over simple transactions. The future of insurance lies not in complex products or premium calculations alone, but in fostering meaningful purpose and shared success.
One visionary leader at the forefront of this transformation is Hani Rihan, CEO of BiG Agency. His company employs blockchain-based utility tokens called Bigganos to reward agents for their contributions, creating a new compensation model that goes beyond traditional commissions. While not representing equity, these tokens offer agents a forward-looking stake in BiG’s mission and influence.
BiG Agency’s pioneering approach awaits further regulatory clarity to evolve Bigganos into a fully compliant Real-World Asset framework—poised to redefine insurance compensation and collaboration once regulatory landscapes allow.
Conclusion
The insurance industry stands at a crossroads. By leveraging blockchain to humanize insurance, companies can rebuild trust, foster personalized relationships, empower agents as stakeholders, and cultivate a purpose-driven culture focused on long-term value. This transformation, already underway, signals a future where insurance is truly a shared endeavor—uniting technology and trust to protect people and communities meaningfully.
Disclaimer: The opinions expressed in this article are those of the author and do not reflect the views of Crypto.News. This article is for informational purposes only and not investment advice.
