ZhongAn automating health insurance claims using Blockchain

According to Chen Wei, the head of the technology unit of ZhongAn Online Property & Casualty Insurance the largest online insurer in China, blockchain technology will revolutionize the country’s insurance sector. The distributed ledger technology will achieve this by assisting in connected data, managing risk, and improving pricing. Currently ZhongAn Online Property & Casualty Insurance has data-sharing deals with more than 100 hospitals.

Chen ZhongAn Tech now counts about ten insurers in China as customers and assists them in tailoring their services besides improving risk analysis.  ZhongAn Tech has employed distributed ledger technology in insurance policies of ZhongAn Online. During the Big Data Expo which was held in Guiyang Gizhou, Chen revealed that the insurtech startup was collaborating the insurance regulatory bureau of Shanghai in developing a re-insurance platform that will be based on blockchain. This is with a view to improving security as well as traceability of re-insured policies.

Blockchain technology

Despite the ban on Initial Coin Offerings as well as trading of virtual currencies in China, blockchain and its various applications have been well embraced. China has also become one of the first nations on earth to have a blockchain technology policy include at state-level with the technology now featured in the five-year national development plan that runs until 2020. Xi Jinping, the president of China has also identified blockchain technology as one of the areas the country should place greater focus on alongside internet of things, mobile communications, quantum computing and artificial intelligence.

This comes in the wake of Guardtime and EY jointly launched the first maritime insurance in the world which is based on blockchain. The technology, now known as Insurwave, was developed by ACORD and Microsoft Azure. The project’s pilot phased was unveiled last year in September. Later the project was joined by Danish logistics and shipping giant, Maersk. Other members of the project include MS Amlin and XL Catlin.

Shipping data

Per the members the project’s goal is to allow the various sector players to make use of the distributed ledger technology in recording shipping data. Blockchain technology will also allow automation of transactions thereby enhancing efficiency and transparency. When it reaches its optimal use Insurwave is expected to provide support to more than 500,000 automated ledger transactions. In its first year the platform will help in risk management of more than 1,000 commercial ships.