The People's Insurance Company of China will begin applying blockchain technology to its operations following a new partnership with blockchain firm VeChain.
PICC has partnered with blockchain platform VeChain, and a global quality assurance and risk management company DNV GL to make their business more time and cost efficient. Additionally, the new partnership intends to improve 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 companies by offering a more profitable business model.
Specifically, the VeChainThor Platform will assist PICC with expanded data management and more effective data processing, while DNV GL will guarantee the insurance system’s data integrity as an independent 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 other 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 switch 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 currently the 17th top cryptocurrency by market capitalization, trading at $0.0189 with a market cap of around $1 billion at press time.