The People's Insurance Company of China (PICC) is a one of the largest insurers globally, holding $126 billion total assets. The company is publicly held, and is the largest casualty insurance provider in China. They have formed a partnership with VeChain and the global quality assurance and risk management company DNV GL to develop a widespread digital transformation.
"The role DNV GL plays is to ensure data integrity from the business operation perspective. In conjunction with VeChainThor Platform, we will provide a robust digital trust platform to assist PICC with enhanced data management and efficient data processing." - George Kang, CEO at DNV GL Business Assurance Greater China Region
Wasteful Traditional Systems
Insurance companies are using claim management systems that produce massive paper trails. The nature of the industry requires this data, but the systems for validation with the current policy underwriting process are now outdated compared to the technology available, and much of the physical documentation can be replaced.
These inefficiencies create the need for even further data collection and verification because of auditing policies. This workload ultimately drives up the cost of insurance to the policyholders. PICC will make the conversion to blockchain based data on the VeChain public network to protect user data, distribute ownership, and enhance existing artificial intelligence. This more streamlined data infrastructure will reduce turnaround time and premiums, prevent fraud, improve KYC compliance and benefit the overall claim experience.
DNV GL will facilitate expansion to PICC service offerings, while the partnership with VeChain ensures that new services are integrated into the new system, rather than bringing more complexity into their old model. The ideal result will be to use blockchain and smart contracts to revolutionize the insurance industry with "instant compensation." Ultimately, advanced IoT devices, smart contracts and digital currency will create a much more profitable business model.
Blockchain Insurance Systems
VeChainThor provides enterprises with the tools, securities, and governance to properly control their assets while collaborating across multiple verticals, industries, and across national borders. They are working to connect blockchain technology to the real world by providing a comprehensive governance structure, a robust economic model, and IoT integration. There are many other major insurance providers using blockchain technology, but PICC is the only organization using a blockchain network that has an associated cryptocurrency (VET).
The group was created by Aegon, Allianz, Munich Re, Swiss Re and Zurich, and was joined by 23 other companies within one year, including AIG and AIA. They have since transitioned into an independent company incorporated in Switzerland in order to “streamline the development, testing and commercialization of blockchain solutions.” B3i built their prototype on Hyperledger Fabric of IBM, has since switched R3 Corda last month.
The RiskBlock Alliance
A Pennsylvania-based risk and insurance group The Institutes launched this group earlier in 2018, and was quickly joined by 18 companies. RiskBlock chose R3's Corda platform, but also experimented with a private Ethereum network.
Guardtime and EY developed Insurwave, a shipping industry focused platform, using Microsoft Azure’s cloud services in combination with the R3 Corda blockchain. Maersk, the worlds largest shipping company, began using the platform in May.
AAIS openIDL Blockchain
The American Association of Insurance Services is using blockchain to store patient information. They claim it is the “first secure, open blockchain platform that enables the efficient and permissioned-based collection of statistical data on behalf of insurance carriers, regulators and other participating contributors.” OenIDL includes a smart contract feature for automatic transaction execution or “instant compensation.”
By: BGN Editorial Staff