The main insurance company of the Chinese insurance company (PICC) will apply the blockchain technology to its operations through a new partnership, according to a press release dated September 1.
PICC has partnered with the VeChain blockchain platform and a global quality assurance and risk management company DNV GL to make its business more time efficient and cost effective. Furthermore, the new partnership aims to improve fraud prevention, awareness of customer compliance (KYC) and claims experience.
In the announcement, PICC states that blockchain technology will bring digital transformation to the insurance industry, which reportedly create "instant compensation" for companies by offering a more profitable business model.
In particular, the VeChainThor platform will support PICC with extensive data management and more efficient data processing, while DNV GL will guarantee the integrity of the insurance system data as an independent third party insurer.
Other insurance organizations around the world have begun to adopt blockchain technology. In August, the American Association of Insurance Services (AAIS) introduced the "first secure and open blockchain platform" for managing the collection of statistical data by insurance companies, regulators and other contributors.
In April, global insurance Marsh announced the first commercial blockchain service for proof of insurance in order to transform its system from "complicated and manual to rationalized and transparent."
VeChain, based in Shanghai, is the first blockchain company to initiate cooperation with the Chinese government. The VeChain IFP was launched in 2015 and is currently the 17th top cryptocurrency by market capitalization, trading at $ 0.0189 with a market capitalization of around $ 1 billion at the time of printing.