People’s Insurance Company of China (PICC), one of the world’s largest insurance companies is partnering with blockchain platform VeChain and DNV GL, a global quality assurance and risk management company. PICC focuses on motor vehicle insurance, commercial property insurance, homeowners insurance, cargo insurance, liability insurance, accidental injury insurance, short-term health insurance, marine hull insurance, agriculture insurance, credit and surety insurance,
Based in Shanghai, VeChain continues to secure partnerships for real-world use cases that will utilize its public blockchain VeChainThor and native cryptocurrency VET.
The latest partnership with PICC is designed to transform legacy claim management systems and strip away massive paper trails by integrating VeChain’s tech. PICC has $126 billion in total assets. Underwriting insurance claims for policy holders, the company manages data collection, verification and auditing. But these processes are often bureaucratic and bloated, and leave the door open for fraudulent claims. Poor data management and inefficient data processing also drive inefficiencies, redundancies and higher costs that lead to higher premiums.
By using blockchain technology, PICC believes it can create transparency, reduce premiums and prevent fraud.
According to the company’s statement, “The realization of advanced IoT devices and smart contracts within this industry will potentially bring ‘instant compensation’ for the companies producing a much more profitable business model.”
PICC selected VeChain as its tech platform because of existing product implementations from its partnership with DNV GL. VeChain and DNV GL are already working on solutions to advance medical standards and improve vaccine traceability, in addition to integrating other real-world enterprise applications for businesses and governments.
For the insurance giant’s use cases on VeChain’s platform, DNV GL will act as an independent third-party assurer.