In an attempt to bring on a digital transformation of their company which embraces blockchain tech, The People’s Insurance Company of China (PICC) have announced that they have signed deals with a number of tech companies, one of which is VeChain.
PICC, a company which boasts the title of one of the largest insurance companies around the globe holds over $126 billion in assets has also announced that it will also be enlisting the services of DNV GL to assist with its blockchain transformation.
Traditionally all insurance companies use an extremely outdated accounting system which leaves unsustainable paper trails for every client, claim and invoice they might process. As you can imagine this is an extremely costly method which consumes a great deal of time and resources.
The inefficiencies noted in the legacy method of data collection and policy underwriting are what the PICC believe allow bad actors acquire policies and ultimately drive the price for everybody else.
It is their belief that by using blockchain technology they will be able to reduce the time it takes to underwrite a policy, prevent fraud, improve their KYC experience and ultimately lower premiums for their customers. They go a step further to explain that they feel the advancements in the IoT (Internet of Things) industry will allow for their customers to potentially benefit from “instant compensation” through this partnership.
As VeChain were partners with DNV GL prior to this announcement it is very likely that this factor played a big role in their latest partnership with PICC.
Co-Founder of VeChain, Sunny Lu, had this to say on the companies most recent partnership:
Collaborating with PICC expands our business within the insurance industry. We are confident we will provide great service and products to PICC, together with DNV GL.
As the crypto bear market begins to show signs of easing off it seems there is plenty of great advancements being made which will bode well for the longevity of blockchain technology as a whole. Watch this space.
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