The Shanghai Insurance Exchange (SHIE) has issued a new set of standards for the digitisation of the reinsurance sector.
SHIE recently released the “Digitised Reinsurance Registration and Settlement Platform Data Standards (Property Insurance)” (数字化再保险登记清结算平台数据规范（财产险）), in a bid to provide data standards for blockchain-based reinsurance applications.
The standards are reportedly the first of their type in the world for blockchain-based reinsurance data exchanges.
SHIE hopes that the release of the standards will facilitate the effective and comprehensive integration of organisations into digitised reinsurance registration and settlement platforms, as well as help to increase the efficiency of transactions between reinsurance companies, strengthen risk management and internal control, and drive the digital transformation of the reinsurance sector.
State-owned media further points out that the move could increase the global influence of Chinese financial standards, and add further impetus to the establishment of a first grade international reinsurance centre within China.
“For a long time, reinsurance transactions have lacked unified standards and platforms for digital transactions between companies,” said a report from National Business Daily.
“This has led to problems such as difficulty adjudicating disputes involving data for online exchange and contracts; settlement challenges, and heightened default and settlement risk.”