Application of new digital blockchain technology to solve the challenges of information asymmetry in insurance companies

The asymmetry of information in the capital market has caused the transaction process to become unclear and will have adverse consequences. Blockchain technology, in general, was first described by Haber and Stornetta in 1991, and today it is considered as a transformative technology in the business space. It is the result of information asymmetry in insurance companies.

The current research is a qualitative research that includes the method of collecting library information. In terms of the type of research, this research is considered a prescriptive research.

Information asymmetry is a phenomenon that overshadows the implementation of insurance company contracts. This phenomenon occurs in cases of lack of information transparency in such a way that one of the parties to the contract has access to information that is not available to the other. Although some principles governing insurance company contracts, such as the principle of maximum good faith, require the parties to the contract to provide accurate information and create information transparency, but in cases of bad faith in one of the parties, the correct implementation of the insurance contracts concluded in this area is faced with a challenge. Among the results of this phenomenon is the negative choice of the buyer and the creation of moral hazards, which are considered to have adverse effects on the economic development of a country.

Of course, there are solutions to solve these challenges, the best of which is to create information transparency through the implementation of modern electronic tools in Iran's standard financial accounting system. Blockchain is a platform that, with its unique characteristics and new tools, provides the possibility of creating maximum transparency and causes the elimination of this phenomenon