Shanghai Stock Exchange Aims To Improve Insurance And Pension Industries Using Blockchainbr>
The Shanghai Stock Exchange (SSE) is planning to use blockchain technology to improve China’s insurance and pension industries.
SSE, the fourth largest stock exchange in the world by market cap, has teamed with a number of major players in the insurance industry including Insurance Asset Management Association of China (IAMAC), Changjiang Pension Insurance Company, Tokyo Maritime Sunshine, and others. The companies will be utilizing blockchain “to create a new, high-efficiency, low-cost and safer insurance industry.”
In the insurance asset management sector, the goal is to improve the flow of data and information between relevant parties, enable real-time monitoring of assets, and reduce fraud. In terms of pension management, the SSE said blockchain can help break the “information islands” between various stakeholders and enhance the security of sensitive information of all parties, track and trace historical annuity information, and significantly improve operational efficiency.
“The digital transformation of enabling insurance will build a blockchain service platform to solve the bottleneck problem of enterprise innovation,” the SSE said. “With convenient and efficient application development, flexible deployment mode and visual monitoring and operation platform.”
The exchange is also encouraging re-insurance and co-insurance companies to build an industry risk trading blockchain platform to solve business inefficiencies.
“By real-time uplinking of policy and billing data, the participating companies can instantly obtain relevant business data at their respective blockchain nodes,” the SSE said. “The bills are confirmed, thus breaking the barriers of information asymmetry between direct insurance and reinsurance, and the main and the common, avoiding long-term repeated entry, greatly reducing manual operations in the traditional reinsurance and co-insurance business, and effectively improving transaction efficiency.”
The announcement came after the SSE revealed its plans to use blockchain in its securities transactions. According to the SSE, “most people” consider that blockchain technology can “help improve the transparency of the securities industry.”