Per a press release on September 1, 2018, the People’s Insurance Company of China (PICC), one of the largest Chinese insurers with assets worth over $126 billion has partnered with VeChain (VEN) and DNV GL to bring blockchain-based solutions to the world of insurance.
Blockchain Continues to Soar in China
The People’s Insurance Company of China is a state-owned insurer with an over one-third market share and ranks 117th on the Fortune 500 companies list. The partnership with VeChain is perhaps one of the biggest milestones for VEN, which has been aiming to use its blockchain technology on the insurance industry and is bound to benefit a lot because of the incompetence in data collection, verification, and auditing.
DNV GL bought a share in VeChain early this year to adopt the blockchain technology’s potential to enhance transparency and traceability of their products and the partnership with PICC will bring robust solutions that will safeguard “user data distribute ownership and enhance existing artificial intelligence.”
This has been an impressive year for VeChain which just completed its MainNet Swap in August and launched a whitepaper besides announcing several partnerships with many companies including LogSafer to offer logistic solutions and NTT to provide a 5G program among others. VeChain co-founder Sunny-Lu said in the official statement:
“Collaborating with PICC expands our business within the insurance industry. We are confident we will provide great service and products to PICC, together with DNV GL.”
Need for Betterment of SCM
The development is informed by the existing sorry situation of data collection, verification and auditing that often leads to unnecessary price hikes. PICC has taken the blockchain direction as it believes the technology has what it takes to bring a digital transformation that will reduce the turnaround time, premiums, and incidences of fraud besides reinforcing KYC (Know Your Customer) compliance.
The availability of smart contracts and advanced IoT devices will ensure the company improves its profitable business models and tip towards instant compensation. The new partnership will ensure that PICC provides healthier assured solutions that protect user data and distributed ownership. VeChain foundation commented on the partnership on its official Twitter page:
People's Insurance Company of China (PICC), one of the largest insurer globally with $126 billion total assets, is opting to embrace blockchain technology with the help of DNV GL and VeChain. https://t.co/2CyZsybRvm
— VeChain Foundation (@vechainofficial) September 1, 2018
The People’s Insurance Company of China disclosed the reason they chose VeChain because of its robust blockchain technology, which in collaboration with DNV GL has shown leadership by providing the government and leading businesses with blockchain solutions.