Major reinsurers to unite on blockchain system
Three of the reinsurance industry’s major players have agreed to jointly develop a blockchain system in a bid to improve the sector’s transparency, according to reports.
The group is made up of two reinsurance multinationals; US group General Reinsurance Corporation and Germany’s Hannover Re, together with the state-owned China Re, which was established by the country’s Ministry of Finance.
The initiative was announced at an event earlier today in Shanghai, according to a local news agency.
ZhongAn leads tech development
The report stated that the reinsurers will be mainly responsible for providing business support, while ZhongAn Technology (above) – the technology arm of China’s first internet insurer ZhongAn – will lead the scheme’s technological development. ZhongAn Technology already operates a professional cloud-based service platform called Anlink, which it launched in November 2016.
The report went on to state that a major challenge for the reinsurance industry in China is an information imbalance among parties, which ultimately leads to higher reinsurance costs and impedes the sector’s long term growth.
To address this disparity, the group plans to create a distributed blockchain network that will enable various parties to view assets and transactions in a more syndicated manner, improving the efficiency and transparency of the information flow.
According to the report, the joint initiative will be supervised by the Shanghai bureau of the China Insurance Regulatory Commission (CIRC), central regulator for the country’s domestic insurance industry.