Chinese Insurance Firms Use Blockchain to Process Coronavirus Claims

Published at: Feb. 9, 2020

Insurance firms in China use blockchain to manage coronavirus-related claims amid the outbreak. English-language local news outlet South China Morning Post reported on Feb. 9 that this month Chinese online mutual aid platform Xiang Hu Bao added the coronavirus to the illnesses eligible for the maximum one-time payout of around $14,300 (100,000 yuan).

Blockchain used for insurance claim processing

Xiang Hu Bao is not an insurance policy, but a blockchain-based collective claim-sharing platform that counts 104 million users. Per the report, blockchain technology is employed by the system to prevent fraud and allow for faster claim processing.

Xiang Hu Bao is owned by Chinese finance giant Ant Financial and uses its mobile payment processing service AliPay, which funds the payouts for coronavirus victims with its own capital. A firm’s spokesman said:

“Xiang Hu Bao has been able to process claims and make payouts to participants quicker, due to the decentralised, trust-free nature of blockchain technology. [...] Claim applicants can submit their supporting documents as evidence while investigation firms can get immediate access to them on the blockchain. All parties involved can see the entire process.”

Blockchain used to reduce paperwork

Also Blue Cross Insurance, owned by the Bank of East Asia is reportedly helping to decrease the bureaucratic impact of the coronavirus outbreak with a medical claims app. The insurance service’s managing director Patrick Wan told South China Morning Post:

“Our blockchain-backed claims service has played a key role during the outbreak of the coronavirus by totally eliminating the paper process and the need for back-and-forth documents delivery to clinics. [...] This really helps to mitigate the risk of infection from face-to-face contact.”

Blue Cross Insurance claims that its platform is capable of managing over 1,000 transactions per second without human involvement. So far, since its launch in April 2019, the medical claims app has on average seen a double-digit monthly policyholder user base growth. Patients using the app can see the result of their claims within a day after the hospital visit.

Blockchain’s relationship with coronavirus

According to the New York Times, 811 people died because of the coronavirus in China and the number of confirmed infections rose to 37,198. An infection of this scale has seen many advocate for the tools provided by the blockchain and cryptocurrency space try to be employed to address the crisis.

Blockchain-enabled applications developer Acoer has created a data visualization tool called HashLog to track the deadly coronavirus that employs the distributed ledger protocol Hedera Hashgraph.

Syren Johnstone —  executive director of the master in laws program at the University of Hong Kong — recently suggested that blockchain and AI-driven strategies should be implemented to better tackle responses to the coronavirus epidemic. Furthermore, blockchain startup Hyperchain announced the launch of a blockchain-based platform to fight against the coronavirus epidemic earlier this month.

The coronavirus also has a direct impact on the cryptocurrency industry, with multiple Asian blockchain events being delayed in response to the outbreak. Also, Hong Kong-based blockchain remittance startup Bitspark has abruptly announced its closure, citing the virus among the reasons.

Tags
Blockchain
China
Coronavirus
Insurance
Alipay
Insurance Industry
Related Posts
Payment Giant Alipay Steps Up Game to Expand Beyond Payments
Billionaire Jack Ma, owner of payment app Alipay, seeks to lure 44 million merchants to expand services for the app’s 900 million users in everything from real estate purchases to restaurant and cinema bookings, according to a March 10 report by Bloomberg. Alipay is aiming to attract these merchants and service providers in China with mini programs — lite apps that sit on top of its interface and provide quick access to services. Coronavirus has boosted demand for online services Demand for online services has reportedly surged in China since the outbreak of Coronavirus in December. He Yongming, vice president …
Blockchain / March 10, 2020
Blockchain-Based Education Platform Offered to Schools Struck by Coronavirus
Blockchain-based education technology provider Odem has announced it will provide its platform to schools and universities that were disrupted as a result of the coronavirus pandemic. In a press release published on March 9, Odem states it is offering its “online integrated learning platform and certification management system free for use to schools and educators to continue educating students until it is safe to return to campus.” Odem freely offers platform to schools disrupted by coronavirus In an interview with Cointelegraph, CEO and co-founder of Odem Richard Maaghul stated that the coronavirus “is a big concern for us and we …
Technology / March 10, 2020
China Highlights Blockchain in Pandemic Preparedness Strategy
Chinese authorities are trying to strengthen their epidemic preparedness and have identified blockchain as a key component of the response. The Chinese Circular of the National Health Commission released its plan on June 30 on how to ramp up its information technology support amid future pandemics. One component of the strategy is the use of blockchain technology for enhancing data sharing among medical institutions. Data sharing is key The Commission is urging local health departments to promote data sharing and collaboration between online hospitals and physical medical institutions. It says that Blockchain technology should be implemented to achieve the safe …
Technology / June 30, 2020
CBDCs With a Twist: The Public-Private Solutions Needed for Adoption
On May 26, Tommaso Mancini-Griffoli, a representative from the International Monetary Fund, stated that moving forward, the best way to harness the potential of central bank digital currencies would be by fostering synthetic partnerships between the private and public sectors. Further expounding his views on the matter, the deputy division chief of the IMF’s monetary capital and markets department stated that the vision behind CBDCs being completely under the control of a central bank is now an outdated one and that the entry of private players could help spur innovation. When asked about how such a partnership could even start …
Blockchain / June 2, 2020
Question of centralization faces growing crypto insurance industry
Cryptocurrency markets have been maturing over the last few years, making demand for crypto insurance solutions larger as more advanced players dip their toes into the nascent ecosystem. Investopedia reports that cryptocurrency insurance is seen as a “big opportunity,” with a spokesman from one of the world’s largest insurers, Allianz, saying that the company has explored product and coverage options in the cryptocurrency space as it becomes “more relevant, important and prevalent on the real economy.” The cryptocurrency ecosystem is still seen as dangerous and volatile, where funds aren’t completely secure even on leading cryptocurrency exchanges. While some platforms, including …
Adoption / May 9, 2022