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Chinese e-insurance company Zhong An launches its subsidiary to grow the Blockchain insurance industry ecosystem.
Zhong An, China’s first online insurance company, has established Zhong An Technology to conduct research and development on artificial intelligence, Blockchain and cloud computing.
Their focus is on implementing Blockchains into their online insurance platform and to be an innovator in the healthcare and finance sectors.
Xing Jiang, CTO of ZhongAn said:
"With the creation of ZhongAn Technology, we are developing a new FinTech ecosystem, integrating technological research with financial innovation. We aim to be an accelerator for both the finance and healthcare sectors.”
The subsidiary has already worked with more than 20 partners from Blockchain-applicable sectors such as banking, insurance and healthcare to create the Shanghai Blockchain Enterprise Development Alliance, which is one of China’s first Blockchain-focused bodies to develop Blockchain applications.
Zhong An Technology has even teamed up with Fudan University’s School of Computer Sciences and Technology to set up a FinTech laboratory focused on Blockchain and security.
According to Zhong An, they have partnered with and will be using Ethereum’s Blockchain in their platform, most likely for its smart contracts benefit and will release its services on a Blockchain cloud platform known as Anlink. Furthermore, it is a Blockchain-based open platform which Zhong An is using to encourage other companies to help develop and grow the market with their own ideas.
Vitalik Buterin, founder of Ethereum added:
"I am delighted that ZhongAn Technology has integrated our technology to build an open platform and that the Chinese insurance industry is actively exploring the applications of Blockchain technology. I hope that more and more Chinese companies can tap into this field and help develop this new area.”
Deloitte UK talked about how Blockchains would make perfect candidates for insurance databases:
“Adopting a common Blockchain across the sector could create a step-change in value in the insurance industry: claims-handling could become more efficient and streamlined, resulting in an improved customer experience.”
One advantage that Blockchain has that regular databases don't have, is that it is harder to tamper with Blockchains. This means that all activity is put into the public ledger, ensuring that both parties sealed the contract and that it is the best system to avoid fake transactions/claims. On the other hand, a standard database could be hacked or tampered with.
“Such an approach could also help to reduce further, if not entirely prevent, fraud if identity management was also enforced on the Blockchain,” added Deloitte.
Another is secure automation of the platform using smart contracts. Blockchains themselves offer smart contracts which could be useful for claim verification and check for foul-play on the Blockchain with the benefit of low handling costs.
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