Insurance companies form alliance in Taiwan

Blockchain-based partnership makes life easier for customers with multiple policies

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The insurance industry is adapting to blockchain technology. (CNA photo)

The insurance industry is adapting to blockchain technology. (CNA photo)

TAIPEI (Taiwan News) — Taiwanese insurance customers with multiple policies can now update their personal information or file claims by applying through just one of their insurance companies, thanks to blockchain technology.

Starting Wednesday (July 1) 11 insurance companies and the Chain of Insurance Industry Alliance (保險業理賠聯盟鏈) established a collaboration to facilitate information exchanges. Among its members are Cathay Life Insurance, Taiwan Life Insurance, Nan Shan Life Insurance.

The average Taiwanese owns 3.3 insurance policies, higher than the global average of 2.2, according to Business Next. When individuals have to file insurance claims or change their personal information, repeating the application process with different companies is an inconvenience.

The primary goal of the alliance is to streamline applications and reduce redundancy. From now on, clients need only ask one of their insurance companies to file an insurance claim or update their information, and the data will be synchronized simultaneously with other companies.

In the six-month trial period, synchronization of health and certain injury insurance claims can be made, but group and travel insurance will be excluded.

The traceability of blockchain technology is the backbone of the alliance's data security. Every time someone changes their information, it will be recorded and updated across the blockchain in real-time. Most importantly, these records cannot be modified by any party, which is critical in the event of a dispute.

Prudential, BNP Paribas, and AIA Group have also expressed interest in joining the alliance.