Insurance News Travel & mobility

Japan’s SOMPO trials blockchain for automated mobility insurance claims

train japan

The insurance company SOMPO Japan announced it’s working on a blockchain trial to process mobility insurance claims such as train delays automatically. The firm is working with SOMPO Holdings, mapping firm Navitime and blockchain technology startup LayerX.

SOMPO views the experiment as part of Mobility as a Service (MaaS). We thought this was an auto insurance claim test, but the initial trial is for train delays. For 30 days starting tomorrow, if the departure time of a train on three lines is delayed, a payment will automatically be made to the customer with a digital coupon.

“In order to respond flexibly to changes, we will create new valuable customer experiences and create valuable products and services through co-creation with various partners and the use of cutting-edge digital technology,” said Satoshi Ando, Deputy General Manager, Deputy General Manager at SOMPO Japan.

Flight delay insurance apps are more common, and AXA ran a blockchain trial, which it subsequently withdrew.

Japan is one of the largest insurance sectors in the world. A 2018 ranking of the top 25 global insurance companies featured six Japanese insurance firms ranked by both revenues and assets, more than any other country.

Other Japanese insurers are also exploring blockchain. One of the most prolific is Tokio Marine, which invested in the blockchain insurance firm B3i alongside 19 other global insurers. In 2018, it conducted a trial with NTT Data for marine insurance blockchain transactions. Earlier this year, alongside NTT Data it signed up for a Singapore blockchain trade initiative.

A month ago, Diado Life said it was running a proof of concept for a branded digital currency to be used as rewards to incentivize clients to stay healthy.