Bank of China is the lead participant in new trials for the use of the Chinese government’s forex blockchain platform to expedite insurance policy financing.
On 17 May the State Administration of Foreign Exchange (SAFE) announced the launch of trials for insurance policy financing (保单融资) by means of its cross-border blockchain services platform.
The trials will see Bank of China (BOC) work closely with parties including the China Export and Credit Insurance Corporation (Sinosure) to conduct insurance financing operation in multiple provinces including Fujian, Jiangsu, Zhejiang, Guangdong and Qingdao.
Over 290 legal person banks will also establish data connections and operational integration with Sinosure via the assistance of the blockchain platform, to further support the online insurance policy financing operations of these lenders.
SAFE hopes that use of its cross-border blockchain platform will help facilitate inquiries in relation to insurance policies, agreements, amounts and compensation, as well as help to resolve problems that have traditionally impeded insurance policy financing such as high costs, low levels of digitisation and severe data barriers.
Initial preparations for the trials commenced on August 2020, and development testing has already finished, with BOC branches in Fujian, Jiangsu, Zhejiang, Guangdong and Qingdao all participating.
BOC has long been considered China’s go-to bank when it comes to forex, foreign trade and supply chain finance operations. The state-owned lender cooperated closely with Sinosure in 2020 during COVID-19 relief efforts, with the two parties jointly unveiling a series of measures to “stabilise foreign trade and stabilise foreign investment.”
BOC and Sinosure ranked first in 2020 when it came to insurance policy financing as well as corresponding coverage sums.