Chinese insurance companies use blockchain to handle claims linked to coronavirus after the outbreak. Local media outlet reported that this month the Chinese online mutual assistance network Xiang Hu Bao added the coronavirus to the diseases eligible for a maximum one-time payout of about 100,000 yuan ($14,300).
Faster Claim Processing, Prevents Fraud
Xiang Hu Bao is a decentralized claim-sharing network focused on a blockchain that counts 104 million users, not an insurance policy. According to the newspaper, the program employs blockchain technology to prevent fraud and allow faster processing of claims.
The Chinese finance company Ant Financial owns Xiang Hu Bao which uses its mobile payment processing service AliPay, that finances payouts for coronavirus victims with its own money.
A spokesperson from Xiang Hu Bao said:
“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. […] 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.”
Reduces Paperwork, Mitigates Infection Risk
In the same context, Blue Cross Insurance, which is owned by Bank of East Asia, is helping to reduce the regulatory effects of coronavirus outbreak with medical claims program. Managing Director of the insurance company, Patrick Wan said:
“Our blockchain-backed claims service has played a key role during the outbreak of the coronavirus by totally eliminating the paper process and the need for back-and-forth documents delivery to clinics. […] This really helps to mitigate the risk of infection from face-to-face contact.”
Blue Cross Insurance claims its software management capacity amounts of more than 1,000 transactions per second without intervention by humans. So far, the medical claims app has seen a double-digit monthly user base development for policyholder since its launch in April 2019. Patients using the app will be able to see the outcome of their claims within a day of visiting the hospital.