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In Centralized Insurance Company, the process of Insurance occurs like :

Assesses the risk
Determines the premium
Determines when the liability should be realized
Assesses the occurrence of damages
and finally offers the payments to the Insured Individuals.
In Decentralized Insurance, the process of claiming Insurance occurs in the following way :

All those processing steps done by the centralized company in traditional insurance is done by smart contracts or computer codes in the decentralized insurance
In the Decentralized Finance based Insurance Ecosystem, these processes are automated through the use of Blockchain Technology, Oracles, Smart Contracts and cryptocurrencies.