There has been a lot of hype lately about the ever-growing industry – blockchain. Over the years, we have seen various sectors adopt the technology due to its enormous benefits, while some industries are still skeptical and prefer a possible adoption in the future.
However, a Chinese insurance giant, the People’s Insurance Company of China (PICC), has released a statement about its adoption of the Digital Ledger Technology (DLT), for the smooth running of its day-to-day operations.
PICC is a state-owned insurance company worth about USD 126 billion in assets. The firm is licensed to provide coverage for motor vehicles, commercial property, private properties, cargos, liabilities, accidental injury, and many more.
The move will see PICC link up with two giant firms including Singapore-based Vechain, a blockchain start-up that protects user data, distributes ownership, and enhance existing Artificial Intelligence (AI). The other party is Norway-based DNV GL, a quality and risk management company.
PICC believes that the adoption of DLT will help them improve fraud prevention, reduce the turnaround time, and most importantly, beef up the company’s compliance with China’s SEC regulation on Know-your-customer (KYC).
In January, DNV GL agreed on a partnership with Vechain to adopt blockchain that will help companies boost the transparency and traceability of their products from the factory to the consumer.
PICC said the reason for the partnership is because of the existing relationship between DNV GL and Vechain, on its current solution to cater for problems within businesses and government.
Also, the partnership will transform the insurance industry, thereby providing instant compensation to businesses, and individuals for any loss suffered.
“Collaborating with PICC expands our business within the insurance industry. We are confident we will provide great service and products to PICC, together with DNV GL,” said Sunny Lu, Co-founder at VeChain.
Possible Adoption of Blockchain Technology In The Future
This is not the first time insurance companies will be adopting DLT. Marsh, a global insurance brokerage and risk management firm, announced the first commercial Blockchain solution for proof of insurance in April.
Last month, the American Association of Insurance service (AAIS) posted a video on youtube, introducing its blockchain-based insurance database and reporting tool.
With more companies utilizing the blockchain technology, it is only a matter of time before the skeptics clear their doubts about DLT.