A group of nine insurance companies has completed a new blockchain trial in China that was initiated by the Shanghai Insurance Exchange, aimed at resolving credit problems and account settlements between insurers.
The trial covered four dimensions, namely, functions, capabilities, safety, as well as operations and maintenance, in the use of blockchain in credit operations between insurers in the industry. The aim is to leverage blockchain technology's advantages including its traceability and tamper-proof features, reported Yicai.com.
The nine insurers were Cathay Life Insurance, Meiji Yasuda Life Insurance, AIA Group, China Continent Property & Casualty Insurance, Starr Property & Casualty Insurance, Taiping Life Insurance, Taiping Property & Casualty Insurance, Sunshine Life Insurance and Minsheng Life Insurance. The Shanghai Insurance Exchange acted as the controller of the blockchain system.
The Exchange's next step is to test high-frequency transactions using blockchain.
The goal is for the system to handle premiums, commissions and claims, to achieve automatic reconciliation, and to replace the manual reconciliations currently carried out in reinsurance business so as to improve efficiency.
Several other blockchain developments have been taking place in the Chinese insurance market. In March 2016, Sunshine Insurance became the first insurance company to use blockchain technology when it launched a platform for customer loyalty points.