Shanghai has just seen the establishment of a new insurtech research institute that focuses on blockchain applications.
The Insurance Blockchain Innovation Centre (保险区块链创新中心) was officially launched on 27 October at the 2nd Lujiazui International Reinsurance Conference.
The Centre is jointly established by the Shanghai Insurance Exchange (SHIE) with members of industry, with the mission goal of “further energising applications of the blockchain to the insurance sector.”
Zeng Yujin (曾于瑾), chair of the SHIE, said that the Centre would serve to “integrate industry energy, and energise industry digitisation and transition across the three areas of technological R&D, scenario applications and the formulation of benchmarks.
“[This] will help to achieve multi-scenario tech innovation and applications for the blockchain across institutions, industries and regions.
“Each of the participants in the Centre will make the formulation and application of blockchain reinsurance standards the entry point, and continue to drive the standardisation and standardised application of blockchain technology in the insurance sector.
Zhang Rong (张荣), SHIE blockchain executive, highlighted the immense potential for the application of blockchain technology to insurance operations.
“The blockchain is referred to as a ‘trust device’ that possesses outstanding openness and connectivity, and can effectively reduce data problems such as uniqueness, continuity and mutual trust,” said Zhang.
“Because insurance by its very nature is a risk transaction and services the real economy, there are usually a large number of participants in insurance operations, which requires an open and reliable method to connect to multiple parties. For this reason there is a natural fit between the blockchain and the insurance sector.”
