Today CryptoBLK and the Hong Kong Federation of Insurers announced a blockchain proof of insurance system. The purpose is to verify the authenticity of motor insurance cover notes in real-time.
The “Motor Insurance DLT-based Authentication System” (MIDAS) was created to combat fake documents and illegal motor insurance brokers. The system is privacy friendly in that it doesn’t store any personally identifiable information such as the person’s name or identity. A QR code is provided to enable car owners and the Transport Department to authenticate documents.
“MIDAS is the first ever industry-wide application of blockchain technology in the space of motor insurance in Asia,” said Mr. Philip Kwan, Chairman of HKFI’s Accident Insurance Association. “This is a classic case of Public-Private Partnership initiative to address the perennial problem of fake cover notes in our insurance market,” added Mr. Kwan.
It took 12 months for CryptoBLK to develop the platform including modifications and a pilot program.
CryptoBLK is led by Dr. Duncan Wong and is active in the insurance and trade finance sectors. HSBC hired the company to help on the Voltron Letter of Credit consortium platform based on R3’s Corda.
“CryptoBLK is thrilled to play a major role in evolving the insurance industry standards in Hong Kong, fostering real business innovations through applying innovative technologies while contributing to the betterment of the public and society,” said Wong.
Late last year major U.S. insurer Nationwide launched a consumer proof of insurance product developed with the RiskBlock Alliance. RiskBlock is soon to go live with its proof of insurance solution which will be available for all participating insurance companies.
Eight months ago insurance brokers Marsh launched a proof of insurance system with IBM. The platform is targeted at contractors and workers so they can demonstrate that they have appropriate insurance cover. More recently the company extended the application to gig economy workers.