Today at a
press conference in China, China Re, Hannover Re, GenRe, and Zhong An unveiled a Reinsurance Blockchain Whitepaper. More importantly, the group also announced plans to create a joint reinsurance blockchain platform.
Apart from the efficiency benefits of blockchain, they outlined two reasons for the development. Firstly, the insurers have complete information, but the reinsurer has very limited data about transactions. Secondly, the limited transactional data available to reinsurers results in operational risk for them.
The net effect is reinsurers lack confidence in the information they have, hence they charge more. As a result, this limits the take up of reinsurance in China.
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