Bank of China’s Insurance IT arm has reportedly teamed up insurance companies to launch the “China Banking Insurance Industry Information Alliance Chain”, an insurance blockchain with multiple partners. The project currently stores electronic policies on the blockchain for transparency and efficiency.
Instead of domestic blockchain, the bank is using Hyperledger’s Fabric. The blockchain stores policy information in one place, and streamlines the reconciliation process and protects the data from tampering. Where there are policy changes, the bank, insurer, and reinsurer will all reconcile to ensure their policy versions are the same; to create an industry mutual trust alliance, and to enhance the mutual recognition of policies.
4 million policies so far
As of the end of September 2019, the project has cooperated with a number of insurance companies in electronic policy management, and has accumulated more than 4 million electronic insurance policies. Since the beginning of this year, it has added more than 300,000 new trusts. Meanwhile, several insurance companies are coordinating testings and are preparing to join the alliance.
The central government’s State Council, the President Xi himself have emphasized the need for Chinese banks to embrace technological advances such as fintech, with the aim of providing better credit, wealth management and investment services to domestic consumers and encouraging China’s role in global trade.