Under the partnership, which also includes Norwegian quality assurance and risk management firm DNV GL, China-based PICC will offer blockchain solutions to help enhance the insurance process.
PICC, which owns China’s biggest non-life insurer PICC Property and Casualty Co, expects to gain a competitive edge with this partnership.
These blockchain solutions could potentially replace the legacy claim management systems, which involves insufficiently validated data in policy underwriting.
“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,” PICC said in a statement.
PICC is of the view that blockchain technology can help enable reduced turnaround time, premiums and prevention of fraud. The innovation can also improve KYC compliance and claim experience.
The insurer added that using advanced IoT devices and smart contracts in the insurance industry could bring “instant compensation” for companies that have a more profitable business model.
“Collaborating with PICC expands our business within the insurance industry,” said Sunny Lu, co-founder at VeChain.
Why did PICC pick VeChain?
In the press statement, PICC mentioned that it chose VeChain for the tie-up because of their existing solutions with DNV GL catering to real problems within businesses and governments.
VeChain’s public blockchain, VeChainThor, will offer tools, securities and governance to businesses, allowing them to control their assets even as they collaborate across industries and countries.
“In conjunction with VeChainThor Platform, we will provide a robust digital trust platform to assist PICC with enhanced data management and efficient data processing,” said George Kang, CEO at DNV GL Business Assurance Greater China Region.
VeChain initially offer these solutions for certain use cases that are pre-selected, which will help PICC to expand on the base technology.
The market seemed to have welcomed this new development. VeChain [VET] had gained 9.2 percent against the U.S. dollar to trade at $0.018 at the time of writing. The gains were also due to broader bullish trends seen in the market.
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