Chinese crowdfunding website Qingsongchou, Huatai Insurance and China Re have signed an agreement to launch what is called the first industry chain insurance product based on blockchain technology.
The product, called Hongfu eLife, offers multi-million-yuan medical insurance cover, backed by blockchain technology covering the entire industry chain from frontend sales, underwriting and claims payout to back-end reinsurance, so as to give online insurance higher efficiency and transparency.
Hongfu eLife also seeks to allay customers' fears that they would be left unprotected if the product was suspended by the authorities. It extends the protection period for critical illnesses after sales are terminated to a maximum of three years.
Qingsongchou, Huatai Insurance and China Re say that they hope through this product to provide new ideas for information sharing in the insurance sector, among other goals.
Since the launch of the first online low-cost million-yuan medical insurance policy in China in 2016, major insurance companies and health insurers have flooded the market with similar products. At present, there are more than 30 kinds of online medical insurance products in the market that offer cover of several million yuan. For most of the products, the annual premiums range from a few hundred yuan to several thousand yuan. The policies are renewable annually and cover customers aged as old as 100.
Customers run the risk that the policy might not be renewed or that premiums might be increased sharply on renewal. The situation has raised alarm among regulatory officials who have directed insurers to spell out clearly premium hikes and the fact that they might not renew the cover.