Shanghai Stock Exchange ties up with major insurers to promote blockchain tech in insurance space
The Shanghai Stock Exchange [SSE] and big leagues of the insurance industry of China plan to boost the development of insurance and pension Industries. The SSE will cooperate with the Insurance Asset Management Association of China (IAMAC) to utilize blockchain technology to promote the growth insurance and pension industries of China. The SSE will be joined by major insurance industry players like Changjiang Pension Insurance Company, Tokyo Maritime Sunshine, Sumitomo Mitsui Marine and Japan Property Insurance and other institutions as reported by China Securities Journal newspaper.
“The Stock Exchange will use the blockchain technology to open up the insurance industry horizontally, vertically opening up the upstream and downstream industry chains of the insurance industry, breaking the barriers of information and data between institutions, realizing the linkage of resources and promoting the sustainable development of the industry,” read the report.
In an effort to advance insurance asset management, the exchange plans to monitor the assets in real time. They will ensure that the data flow efficiency is enhanced by uplinking the transaction information of the product. They will also collect asset information from managers, investors, and regulators to increase trust in the underlying assets. According to the report,“The digital transformation of enabling insurance will build a blockchain service platform to solve the bottleneck problem of enterprise innovation.”
The tie-up also aims to encourage reinsurance and co-insurance business to create an industry risk trading blockchain platform to solve business inefficiencies. Guarantee chain technology will ensure the credibility of the online transfer of co-insurance and reinsurance business information.
“By real-time uplinking of policy and billing data, the participating companies can instantly obtain relevant business data at their respective blockchain nodes. The bills are confirmed, thus breaking the barriers of information asymmetry between direct insurance and reinsurance, and the main and the common, avoiding long-term repeated entry, greatly reducing manual operations in the traditional reinsurance and co-insurance business, and effectively improving transaction efficiency,” according to the report.
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