China Insurance Firm, VeChain To Promote Digital Transformation

People’s Insurance Company of China (PICC), a non-life giant, has inked a deal with DNV GL and VeChain to implement digital transformation of the insurance industry.

While the Oslo headquartered DNV GL is a global quality assurance and risk management company, Vechain, a Shanghai headquartered startup, is a pioneer in developing real world applications of blockchain technology.

PICC stated that it selected VeChain as a partner because the latter has already built reliable blockchain solutions with DNV GL for enterprises and government entities.

The traditional claim management systems used by insurance companies use too much paper for processing data. Furthermore, there are considerable inefficiencies in data collection, validation and auditing process which may result in malpractices, leading to an overall increase in premium.

PICC is of the opinion that blockchain technology can transform the entire industry by decreasing turnaround time, lessening premium, prevent cheating, while improving KYC compliance and claim experience. Furthermore, advanced IoT devices and smart contracts that are developed by the blockchain industry could radically change the insurance industry and offer “instant compensation” for firms, resulting in higher profitability.

The blockchain solutions developed by PICC in collaboration with DNV GL and Vechain will further enhance digital transformation across the insurance firm’s ecosystem.