  Insurance is one of the fundamental services offered to the citizens to
reduce their costs and assist them in case of an emergency. One of the most
important challenges in the insurance industry is to address liability
challenge and the forging of documents by the involved parties, i.e., insurance
company or the users, in order to increase financial gain. Conventional methods
to address this challenge is significantly time consuming and costly and also
suffers from lock of transparency. In this paper, we propose a blockchain-based
solution for the insurance industry in smart cities (BIS). BIS creates a big
umbrella that consists of the smart city managers, insurance companies, users,
and sensors and devices. The users are known by changeable Public Keys (PKs)
that introduces a level of anonymity. The data collected by the sensors is
stored in cloud or local storage and is shared with insurance company on demand
to find the liable party that in turn increases the privacy of the users. BIS
enables the users to prove and share the history of their insurances with other
users or insurances. Using Proof of Concept (POC) implementation we
demonstrated the applicability of blockchain in insurance industry. The
implementation results prove that BIS significantly reduces delay involved in
insurance industry as compared with conventional insurance methods.
