A new report from China Security Journal reveals that the Shanghai Stock Exchange (SSE) has partnered with the Insurance Management Association of China (IAMAC) to launch a joint initiative aimed at improving the country’s insurance and pension industries through blockchain. Cointelegraph reports that the stated aim of the new group is “’to create a new, high-efficiency, low-cost and safer insurance industry’ through the use of blockchain technology.” The new project intends to build a distributed data interaction platform that will seek to solve the problem of information islands in the industry.
“The digital transformation of enabling insurance will build a blockchain service platform to solve the bottleneck problem of enterprise innovation,” reads a translated excerpt from the China Security Journal article. “With convenient and efficient application development, flexible deployment mode and visual monitoring and operation platform.”
Reports of the new partnership come in wake of news last month that the Shanghai Stock Exchange is planning to update its securities transactions protocols through implementing distributed ledger technology (DLT) within larger financial institutions. Despite its strict regulations against cryptocurrency trading and ICOs, China’s government and private financial sector have invested hundreds of millions of dollars into developing blockchain innovation across multiple industries.
The country’s booming blockchain market is continuing to attract large blockchain companies like Ripple, which stated its intentions last week to begin offering its instantaneous secured payment platform services to large financial institutions in Beijing.
Suggested Reading : Want to know more about blockchain technology? Check out our beginner’s guide to blockchain.
China Security Journal reports that subsequent parties will be joining the new blockchain initiative to complete the project. The SSE is reportedly aiming to provide real-time uplinking of policy and billing data which would allow participating companies to instantly obtain relevant business data on their respective blockchain nodes.
“The bills are confirmed, thus breaking the barriers of information asymmetry between direct insurance and reinsurance, and the main and the common, avoiding long-term repeated entry, greatly reducing manual operations in the traditional reinsurance and co-insurance business, and effectively improving transaction efficiency,” reads today’s China Security Journal article.
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