Insurance service providers rely on blockchain to fast track claims payout amid coronavirus outbreak
- In mainland China, blockchain-backed online mutual aid platform Xiang Hu Bao adds flu-like illness to critical conditions it covers
- In Hong Kong, Blue Cross’s blockchain-backed app helps to speed up claims process, reduce need for face-to-face contact
Insurance service providers are relying on blockchain technology to fast track claims payouts amid a coronavirus outbreak that has placed at least 27 mainland Chinese cities on lockdown and forced many Hongkongers to work from home.
In mainland China, Xiang Hu Bao, the online mutual aid platform owned by Ant Financial, this month added the coronavirus, which has killed more than 810 people and infected more than 37,000, as a critical illness eligible for a maximum one-time payout of 100,000 yuan (US$14,320).
The coronavirus payout will be funded with Ant Financial’s own capital, and is separate from the 300,000 yuan maximum payout Xiang Hu Bao participants are entitled to for another 100 critical illnesses.
“Xiang Hu Bao has been able to process claims and make payouts to participants quicker, due to the decentralised, trust-free nature of blockchain technology,” an Ant Financial spokesman in Beijing said. “Claim applicants can submit their supporting documents as evidence while investigation firms can get immediate access to them on the blockchain. All parties involved can see the entire process.”
Ant Financial is an affiliate of Alibaba Group Holding, which in turn is the owner of the South China Morning Post.
Since Beijing has said all medication and health care services expenses linked to the outbreak will be covered by the government’s basic medical insurance scheme, the Xiang Hu Bao payout is expected to help alleviate other hardships linked with the illness.