Insurance faucet accelerates the blockchain

China Securities Journal reporter Dai Anqi

Source: China Securities Journal

A number of insurance companies recently told the China Securities Journal reporter that the application of blockchain in the insurance industry has reached out to various ports. A number of leading insurance companies have successively established blockchain insurance laboratories and invested tens of millions of yuan. Used for risk prevention and control of blockchain.

The layout of insurance companies is different

An insurance company said:

“Currently investing in blockchain technology-related startups has more than $1 billion in funding, which is four times the amount invested in Internet start-ups in the mid-1990s.”

The blockchain is considered to be the future technology that is most likely to be popularized and promoted in the insurance industry in China. Since 2016, the blockchain has begun to receive attention from the insurance industry.

The China Securities Journal reporter found out that the insurance industry's application of blockchain technology began with traditional large insurance companies, and gradually developed with the development of Internet insurance. Internationally, in 2016, Lloyd's of the United Kingdom undersured Uber's real-time insurance service by SafeShare using blockchain technology; European insurance giant Allianz Group used blockchain-based smart contracts to deal with catastrophe in 2016. Trading catastrophe bond transactions reduced the settlement time of such businesses from the previous months to hours.

In China, Sunshine Insurance launched the “Sunshine Bay” points in 2016, and also launched the WeChat insurance card list “Fei Changhui” with blockchain characteristics. In 2017, Taikang Insurance Group launched a point management platform based on blockchain technology. Taikang Insurance Group adopted an enterprise-level blockchain based on the Superbook Fabric (HyperledgerFabric) architecture to build a point management platform. In the same year, China Life Insurance and China Life Insurance also began to lay out blockchains. In 2017, China Life Insurance cooperated with Ant Financial for the first time, trying to disclose information. In 2018, it cooperated with QatarPay, a blockchain payment management company. In 2017, PICC launched the blockchain breeding insurance service platform and cooperated with DNVGL and VeChain in the following year to deepen the application of blockchain technology.

In terms of Internet insurance, according to the relevant person in charge of Zhongan Insurance, up to now, the company has submitted a total of 129 patents related to the blockchain, and 112 cases can be found in the actual review. At present, Annchain, a high-performance and high-expansion universal blockchain protocol independently developed by Zhongan Insurance, has become one of the first three open source chains of the Ministry of Industry and Information Technology, and one of the first five products tested through the “blockchain reference architecture”. .

Helping insurance companies break through industry pain points

Analysts believe that insurance companies have been involved in blockchain technology to help break through the limitations or pain points of the insurance industry. First, insurance marketing can break through traditional marketing space, and customers can be acquired through precise marketing with specific scenarios; second, block The chain can be applied to innovative mutual insurance models, intelligent blockchain insurance contracts, transformed insurance self-regulatory platforms and open insurance information circulation databases. Third, the two major problems of Internet insurance are criticized. Security, blockchain technology can effectively protect the privacy and rights of insurance consumers, reduce the cost of Internet insurance and improve the authenticity and security of online transactions, so that these two major ills can be solved and promote the transformation and development of the industry.

The industry believes that insurance companies can use electronic deposit certificates, smart contracts, etc., blockchain technology can run through dynamic pricing, insurance contracting, data operations and insurance funds, and through external connections, with regulatory authorities, and other Multi-dimensional linkage between the main body of the organization and the industry. Insurance companies can reduce industry costs and improve transaction efficiency. They will also provide unified service interfaces and data standards for regulatory authorities, and real-time collaborative business supervision.

The insurer said:

“The decentralization of blockchain can help insurance disintermediation and reduce insurance agency fees; peer-to-peer linkages can break through time and space boundaries and break through the limitations of traditional mutual insurance, enabling homogenous risk individuals to achieve mutual assistance on a larger scale. On the other hand, the blockchain data can not be modified, which is conducive to improving the internal risk control capability of the insurance company. It can ensure the security of the ledger system, funds and information because of the inevitable modification; establish a blockchain general ledger system to improve financial security. ""

User and data security are concerned

“Although the blockchain can play an important role in the development of the insurance industry, from the actual situation, there are still some application risks.” Li Xuefeng, chief technology officer of Zhongan Technology, said that the technology itself has no good or bad points. For business innovation, it is necessary to strengthen the guidance and regulation of blockchain technology, actively explore its development laws, and strengthen the research and analysis of security risks in blockchain; the data risks brought by the development of blockchain technology, users and data Security is one of the main challenges. The accounts on the classic blockchain are not anonymous. They are not real names. The transaction data is also public, but these characteristics conflict with the financial compliance requirements in the real world.

An insurance industry researcher said that the use of blockchain insurance also has implications and challenges for insurance regulation. On the one hand, because the blockchain adopts the interactive consensus platform of multi-party verification, it can improve the trust mechanism of the transaction subject and realize the self-regulation between the blockchain services, which can alleviate the pressure of insurance supervision. On the other hand, the content of insurance supervision must be adjusted accordingly to ensure that there are no gaps in related technologies and platforms, and there are no malicious deceptive systems and transaction records. There may be three changes in the supervision under blockchain insurance: from the original institutional supervision to technical supervision, from government supervision to industry self-discipline, from corporate compliance supervision to social supervision and supervision. At the same time, the use of blockchain technology may lead to new problems and risks, which is also a new challenge and content of future insurance regulation.