China's First Reinsurance Blockchain White Paper Came out to Reshape the Reinsurance Trading Scene
On June 29, China Re Group, Hannover Re, General Re, ZhongAn Insurance, ZhongAn Technology, and Intel Corporation jointly released the Reinsurance Blockchain (RIC) White Paper (hereinafter referred to as the “White Paper”). The White Paper is China’s first experimentally proven reinsurance blockchain guiding outline. It comprehensively and systematically analyzes the commercial value, application scenarios, design concepts, and implementation plans of the reinsurance blockchain, which has guiding significance for solving the pain points faced by the reinsurance industry and realizing the application of the reinsurance blockchain.
At the press conference, based on the research and exploration direction of the White Paper, China Re Group, ZhongAn Technology, Hannover Re, General Re, among others, jointly initiated the establishment of a reinsurance blockchain inter-company trading platform, so as to improve transaction efficiency and accelerate the application of blockchain technology in reinsurance field.
The pioneering reinsurance blockchain experimental platform hits the pain spot of reinsurance business
There have always been two major problems in reinsurance industry: asymmetric information between the two parties which leads to moral hazard; low level of transaction informatization which leads to operational risk. These two problems have seriously affected the confidence of both parties in reinsurance transactions, raised the cost of reinsurance transactions, and slowed the developing speed of reinsurance market.
As the only state-owned reinsurance group in China, China Re Group has been committed to resolving the pain spots of reinsurance business by using artificial intelligence, blockchains, cloud computing, large data and other cutting-edge technologies to better serve the national strategy and the healthy and stable development of the insurance industry. As early as March this year, led by the Shanghai Insurance Regulatory Bureau, China Re Group built the first experimental platform of blockchain reinsurance in China jointly with Zhongan Technology and other partners. Combining the characteristics of reinsurance business, we designed business processes, interaction modes and trading rules, and selected the underlying technology with distinctive features, so that the feasibility and advantages of blockchain technology in dealing with reinsurance transactions is verified. Experiments show that the platform can not only complete transaction steps such as negotiation and contract signing, sub-insurance, bills exchange, claims processing, etc., but also can be integrated into a unified multi-chain trading ecosystem, greatly improving the accuracy and efficiency of transaction processing.
On the basis of the experimental platform, China Re Group, Hanover Re, General Re, Public Security Insurance, Zhongan Technology and Intel Co. jointly wrote the White Paper. Among them, China Re Group, Hanover Reinsurance Company, GM Reinsurance Company and Zhongan Insurance Company would provide business support respectively, Zhongan Technology would provide technical support, and the three parties of reinsurance, insurance and technology jointly shared the research and application of reinsurance blockchain for the first time in the industry. The White Paper pointed out that blockchain has the characteristics of decentralization, openness, independence, security and anonymity, which can effectively solve the two major problems existing in the existing reinsurance business process: first, it will effectively eliminate the information asymmetry between the two parties and help open the black box of reinsurance transactions; second, it will substantially improve the informatization level of insurance transactions and promote the process of intelligent procedure.
Feng Jian, general manager of China Re Group Information Technology Center, believes that blockchain is gradually becoming an important part of the new social infrastructure, playing a strategic role in promoting the digital transformation of China's "insurance-reinsurance" model, and it will reshape the new insurance ecology. At the same time, blockchain technology needs to merge with management mode and business mode for innovation. As a national reinsurance team, China Re Group is willing to invest more resources to establish open cooperation with Zhongan Technology and other partners to promote the rapid development of China's insurance market, and to strengthen international cooperation with all parties to jointly promote the innovative application of blockchains in the field of global insurance and reinsurance.
Integrate the whole process of reinsurance business and reshape the reinsurance trading scene
The White Paper clarifies the design ideas and application scenarios of the reinsurance blockchain technology: with the core of "one district, two blocks, multi-chain, whole process", the whole reinsurance business process is integrated, and the sharing and exchange of reinsurance data is realized at low cost. The technology is applied to business scenarios such as contract reinsurance or facultative reinsurance in property insurance as well as personal insurance.
Based on the characteristics of blockchain, i.e. decentralization, intelligent contract, point-to-point transmission and distributed account book, etc., blockchain platform of reinsurance will reshape the reinsurance transaction process and realize the daily business transaction of reinsurance industry. Firstly, the point-to-point transaction among reinsurance institutions will be realized by decentralization. Secondly, intelligent contracts help realize the automatic reconciliation, clearing and settlement of reinsurance policies; Thirdly, since blockchain data cannot be tampered with, the data is credible, and transactions can be traced, the credibility and security of reinsurance transactions is enhanced and cost reduction and higher efficiency is achieved. And the system transaction supervision and audit can also be strengthened.
Chen Wei, CEO of Zhongan Technology, points out that as an important basis of the value Internet, blockchain can be widely connected to different nodes including reinsurance companies, direct insurance companies and other cross-industry entities. It can effectively solve the trust problems of insurance companies and reinsurance companies and is beneficial to reducing the cost of reinsurance transactions between companies. And it also further enhances efficiency and accelerates the development of the reinsurance market. Zhongan Technology joins hands with China Re Group, Hanover Re, GM Re, Volkswagen Insurance, Intel and other outstanding partners to explore and promote the application of blockchain technology in reinsurance field, bringing new development energy into the reinsurance industry.
Co-constructing reinsurance blockchain platform to achieve a win-win situation
In the round table discussion, China Re Group, Hannover Re, GM Re and Zhongan Technology and other institutions jointly proposed to give full play to the initiative of market participants and jointly create a trading platform for reinsurance blockchain companies, taking the launch of the White Paper as an opportunity. With blockchain as the core technology, the platform will realize business value through business connection and data exchange, to raise the overall level of the industry and promote the industry to actively participate in international cooperation and dialogue.
Experts attending the round table discussion agreed that reinsurance blockchain trading platform between companies is essential for both blockchain and reinsurance industry. On the one hand, it can promote the application of blockchain as a frontier technology, and promote the domestic development of blockchain technology overall; on the other hand, the platform will achieve business connectivity, data exchange and technology value transferability based on blockchain, and will further enhance business value and share the dividends brought about by technological innovation. China Re Group, Hannover Re, GM Re and Zhongan Technology hope to work together with more partners to create the most influential blockchain inter-company trading platform for reinsurance in China, so as to promote innovation and upgrading of the insurance industry and achieve win-win results for insurance, reinsurance and regulatory parties.