Chinese insurer eyes blockchain to prevent fraud, improve KYC compliance

People’s Insurance Company of China (PICC) has partnered with DNV GL and VeChain to explore blockchain technology.

Insurance companies currently use legacy claim management systems that produce overwhelming paper trails on insufficiently validated data that make up the current policy underwriting process. The inefficiencies within data collection, verification, and auditing cause policies to be placed on bad actors leading to price increases on the behalf of all policy owners.

In response to the challenge the insurer has decided to explore the use of blockchain as part of its digital transformation. It claims the technogoly can reduce turnaround time, premiums, prevent fraud and improve KYC compliance and claim experience.

By partnering with DNV GL and VeChain, PICC can provide robust assured solutions that protect user data, distribute ownership, and enhance existing artificial intelligence.

“These solutions will do so without having to educate PICC’s clientele on blockchain technology while still offering the maximum benefits the technology provides, the insurer said in a statement.

VeChain was chosen because of its existing solutions with DNV GL, which are catering to real problems within businesses and governments.

VeChain’s use of their public blockchain, VeChainThor, provides enterprises with the tools, securities, and governance to control their assets while collaborating across multiple verticals, industries, and even countries. By merging this technology with the assurance services of DNV GL, PICC said it will expand its current offerings, ‘bringing true digital transformation to a now stagnant industry’.

George Kang, CEO at DNV GL Business Assurance Greater China Region added that, “The role DNV GL plays is to ensure data integrity from the business operation perspective. In conjunction with VeChainThor Platform, we will provide a robust digital trust platform to assist PICC with enhanced data management and efficient data processing.”

Copyright © 2018 RegTech Analyst

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