PICC believes that blockchain technology can introduce a digital transformation. This should deliver reduced turnaround times, lower premiums, and fraud prevention as well as improve KYC compliance and claim experience. The introduction of IoT devices and smart contracts within this industry will, potentially, add ‘instant compensation’ as well as a much more profitable business model. The collaborative efforts of such a partnership hope to establish new value propositions as well as ‘onboard’ existing PICC clients and competitors to a broader collaborative ecosystem.
PICC and its blockchain solutions
PICC chose VeChain because of its existing solutions undertaken with DNV GL. These cater to real problems within businesses and governments. The blockchain solutions designed for PICC come from this partnership between DNV GL and VeChain and will bring digital transformation across the entirety of PICC.
By partnering with DNV GL and VeChain, PICC aim to provide robust assured solutions which:
- protect user data
- distribute ownership
- enhance existing artificial intelligence.
The approach adopted has the merit that this will occur:
- without having to educate PICC’s clientele about the intricacies of blockchain technology
- still bringing blockchain-associated benefits.
Sunny Lu, Co-founder at VeChain said that, “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.”
VeChain and DNV GL
Started in June 2015 and headquartered in Shanghai, VeChain seeks connect blockchain technology to the ‘real world’ by providing:
- a comprehensive governance structure
- a robust economic model
- IoT integration.
VeChain believes it is a pioneer in the ‘real-world’ application of public blockchain technology. It uses its public blockchain, VeChainThor, to provide enterprises with a combination of tools, securities and governance. This combination enables control of assets along with collaboration across multiple verticals, industries and even countries.
DNV GL is a global quality assurance and risk management company. With its declared purpose being the ‘safeguarding of life, property and the environment’, it enables its customers to advance the safety and sustainability of their businesses. Operating in more than 100 countries, DNV GL focuses on maritime, oil and gas, power and renewables, as well as other industries, to try to make the world safer, smarter and greener.
George Kang, CEO at DNV GL Business Assurance Greater China Region said: “The role DNV GL plays is to ensure data integrity from the business operation perspective. In conjunction with VeChainThor Platform, we will provide a robust digital trust platform to assist PICC with enhanced data management and efficient data processing.”
PICC Property and Casualty Company Limited (PICC) is a property and casualty insurance company based in mainland China. Established in July 2003, the Company’s principal insurance businesses are for:
- motor vehicles
- commercial properties
- accidental injuries
- short-term health
- marine hulls
- credit and surety.
There are also related re-insurance activities as well as investments permitted under the relevant laws and regulations of the PRC.
Enterprise Times: what does this mean
PICC believes it will derive competitive advantage for insurance offerings with the credibility of DNV GL. VeChain provides solutions for pre-selected use cases. Together these will enable PICC to expand upon its base technology as well as exploit DNV GL’s globally-approved presence – as an independent third-party assurer.
By merging blockchain-based technologies with the services of DNV GL, PICC hopes both to:
- expand its current offerings
- bring change to the normally sleepy insurance industry.
This is an intriguing trio with blockchain technologies seemingly at their heart. There is no doubt that the insurance industry is paper and hide -bound. If PICC, DNV GL and VeChain can make insurance more efficient as well as transparent, then enterprise as well as consumer customers should benefit. The results will likely not come quickly.
A play for the long term, this has one important unknown: the avoidance of having to “educate PICC’s clientele about the intricacies of blockchain technology”. This could be the most significant aspect of all.