China Construction Bank (Asia) in collaboration with tech giant IBM has developed a blockchain enabled bancassurance project in Hong Kong.
Bancassurance is mainly a shared relationship between a bank and insurance company, this partnership sometimes gets affected by delays in data transmission or insufficient data.
The platform will give CCB Asia and participating firms a real-time policy data in a shared view thereby reducing time required for status checks.
“This is accomplished through a shared, immutable ledger used for recording transactions. It helps establish accountability and transparency among network participants, enabling CCB (Asia) and its partner insurers to deliver the services more efficiently,” IBM said in a press statement.
The platform is currently being tested with insurance firms and their clients. It is expected to be launched by the end of third quarter of 2017.
CCB Asia deputy CEO Guo Zhipeng said: “After the successful launch of this blockchain-enabled bancassurance project, we plan to extend our experience to other insurance partners in order to optimize our overall bancassurance business.”
IBM Hong Kong general manager Francis Ngai said: “In working with CCB (Asia) and the partner insurers, we have seen how the technology is disrupting traditional business processes. This work sets a standard for local banking and financial institutions in the future.”