Kyobo Life, a government-backed insurance operator, volition trial the first-ever real-world implementation of blockchain technology for commercial insurance coin payments inward Seoul this year. If successful, the characteristic volition significantly heighten client convenience, especially during the procedure of making too getting paid insurance coin with a claim.
Last week, Seoul-based South Korean life insurance fellowship Kyobo Life Insurance was officially selected by the authorities to operate the latter’s airplane pilot blockchain project. The projection seeks to lay the foundation to promote the governments’ agenda for promoting its meshwork of things (IoT) infrastructure. Conducted past times the National Information Agency nether the management of South Korea’s Ministry of Science, ICT too Future Planning, the airplane pilot volition run across Kyobo Life move inward a consortium with blockchain technology startup ‘theLoop’, InsurTech specialist D Lemon too infirmary medical tape service fellowship ‘One’.Using a combination of blockchain technology too IoT authentication, the consortium is looking at developing too launching services that volition pay out sums of insurance coin to policyholders automatically. In quotes reported by Business Korea, Kyobo Life senior MD of digital project design stated: This is the showtime instance where the insurance manufacture is fully connected with fintech too introduces a novel service. If the service is commercialized inward the future, nosotros volition hold upwards able to render a improve service past times utilizing diverse fintech technologies.
Blockchain Record Keeping
The electrical flow procedure of making a medical insurance claim for small-scale amounts of insurance coin typically sees the policyholder pay medical costs to the infirmary first, earlier receiving documentation of these costs from the hospital. The holder would too thus achieve out to the insurer to brand that claim with the supporting documents to instruct the insurance money.
The time-intensive organisation exists this means since medical information is non forthwith accessible past times insurance companies due to fears of information breaches. An immutable blockchain platform could render much-needed recess whilst preserving information security.
A blockchain platform built betwixt the insurer too the infirmary volition heighten the efficiency of this procedure piece reducing the fourth dimension taken for payments. Influenza A virus subtype H5N1 infirmary clerk tin give notice banking concern tally the policyholder’s insurance information through the ledger shared with the insurance firm. The infirmary automatically sends the documentation to the insurer, which would too thus pay the insurance coin to the policyholder.
According to the BK report, the procedure plant fifty-fifty when the policyholder does non accuse the insurance money. As details of the infirmary medical fee payments too insurance contract are auto-authenticated, thus besides is the payment of the insurance coin to the holder, fifty-fifty if it is non demanded past times the holder first.
KoreaTimes has a unlike accept on the authentication process. It reveals that the policyholder would demand to concur to post the infirmary documentation to the insurer showtime earlier the latter pays the insurance money.
“The whole procedure is finished inward 5 seconds subsequently the policyholder agrees,” states Chung Kyu-shik, senior managing director at Kyobo Life’s FinTech team.
Further, the blockchain platform volition also let insurers to banking concern tally if the policyholder has legitimately paid the medical costs to the infirmary or is faking a claim past times making double claims with whatsoever case.
The burden of remembering policy details volition no longer hold upwards a task for consumers either, equally the hospital’s destination of accessing the blockchain ledger volition get got secure authenticated access to these details. Influenza A virus subtype H5N1 infirmary clerk tin give notice banking concern tally the insurance policy over the ledger when the policyholder reveals he or she precisely holds a policy.
Kyobo Life has confirmed its project design to sign deals with a release of major hospitals inward Seoul’s metropolitan too adjoining areas to start the airplane pilot projection past times the destination of 2017. For the trials, cases with small-scale amounts of insurance money, nether 300,000 won ( ,USD$270) volition hold upwards covered.
Ultimately, the insurance operator plans to commercially expand the blockchain organisation to large hospitals across the province to comprehend all of its policyholders.
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