Major insurance company the People's Insurance Company of China (PICC) can apply blockchain technology to its operations via a new partnership, according to a September 1 press release.
PICC has partnered with blockchain platform VeChain, and a worldwide quality assurance and risk management company DNV GL to form their business more time and cost efficient. Additionally, the new partnership intends to enhance fraud prevention, know your customer (KYC) compliance, as well as the claims experience.
In the announcement, PICC says that blockchain technology will bring digital transformation to the insurance industry, which will reportedly create an "instant compensation" for firms by providing a more profitable business model.
Specifically, the VeChainThor Platform will assist PICC with expanded data management and more practical data processing, while DNV GL will guarantee the insurance system’s data integrity as an freelance third-party assurer.
Other insurance organizations worldwide have begun adopting blockchain technology. In August, the American Association of Insurance Services (AAIS) introduced the “first secure, open blockchain platform” for managing the collection of statistical data by insurance carriers, regulators, as well as different participating contributors.
In April, global insurance brokerage and risk management firm Marsh announced the first commercial blockchain service for proof of insurance in order to change their system “from complicated and manual to streamlined and transparent.”
VeChain, which is headquartered in Shanghai, is reportedly the first blockchain firm to launch cooperation with Chinese government. VeChain’s token VET was launched in 2015, and is presently the 17th top cryptocurrency by market capitalization, trading at $0.0189 with a market cap of around $1 billion at press time.
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