According to a press release, PICC has partnered with blockchain information tracking and management systems company VeChain to achieve a digital transformation of the insurance industry.
China's push for blockchain
Although the Chinese government continues to maintain a strict position on cryptocurrencies, blockchain technology companies that provide disruptive solutions in this area continue to align with the long-term plans set by China's superpower.
The application of blockchain in China is limited to financial products and management tracking. In other words, the distributed system used to transform the traditional paper insurance industry represents another first.
PICC is a state-owned company that provides insurance for accidents and commercial contracts through its three subsidiaries.
The insurance industry relies heavily on manual legacy claims management systems to generate paper records of individuals or businesses. However, this practice leads to inefficiencies in the process of data collation, verification and auditing, which makes the insurance process involving all parties expensive and time consuming.
VeChain joins the battle
Under the terms of the agreement, PICC will adopt the VeChain enterprise blockchain solution to mitigate illegal activities such as insurance fraud and inaccurate underwriting.
The insurance giant believes that leveraging blockchain technology will bring "digital transformation" to the broader insurance industry, providing faster processing times, accurate KYC assessments, mitigating fraud, and improving the overall customer experience.
PICC also intends to use VeChain's IoT strength to provide “instant compensation” to affected parties and increase the former's annual income.
The blockchain solution was developed in collaboration with Shanghai-based VeChain and DNV GL, a Nordic company providing technical solutions for a wide range of industries including food, beverage, energy, oil and gas, and marine.
PICC will not teach blockchain technology to customers. However, its goal is to seamlessly integrate a robust blockchain network into its existing infrastructure.
VET is becoming more and more attractive
VeChain has previously worked with DNV GL on projects in multiple industries – DNV GL holds a small stake in VeChain after a private transaction in May 2008 – to drive its focus on building blockchain-based governance And the business ecosystem.
VeChainThor is VeChain's public chain, running on VET tokens, supporting the development of security and government frameworks, allowing organizations to control assets, information and revenue through robust distributed systems.
Sunny Lu, co-founder of VeChain coin, expressed his thoughts:
“Working with PICC has expanded our business in the insurance industry. We are confident that we will work with DNV GL to provide quality services and products to PICC.
For the pilot, PICC will first test VeChain's solution for a specific use case, then fully expand the blockchain system to create a “collaboration ecosystem” for customers and even competitors.
And this will make a big deal in VeChain history.