The Financial Sector faces several challenges, including inefficiencies in claim processing, lack of transparency, and a high dependency on intermediaries, leading to increased operational costs and delayed settlements. Additionally, fragmented data management, interoperability issues, and stringent regulatory requirements further hinder the sector’s efficiency and innovation. These factors not only impact customer trust but also limit the ability of insurers to adapt to evolving market demands. This research explores the potential of blockchain technology (A ledger shared in P2P network) in addressing these challenges by offering a decentralized, transparent, and tamper-proof system for claims management. By integrating blockchain, smart contracts, and cryptographic security measures, the proposed solution aims to enhance trust, efficiency, and compliance in the insurance sector. This study proposes a new IP-NS-FS-BLKCHN Blockchain framework model for insurance service sector for the benefit of customer and organization.