Insurance companies in China use blockchain to manage coronavirus-related claims during the outbreak. English-language local news channel South China Morning Post reported on February. 9 that this month the Chinese online mutual assistance platform Xiang Hu Bao has added the corona virus to the diseases that qualify for the maximum one-time payout of around $ 14,300 (100,000 yuan).
Xiang Hu Bao is not an insurance policy, but a blockchain-based collective claim-sharing platform that has 104 million users. According to the report, blockchain technology is used by the system to prevent fraud and allow faster claim processing.
Xiang Hu Bao is owned by the Chinese financial giant Ant Financial and uses his mobile payment processing service AliPay, which finances the disbursements for coronavirus victims with its own capital. A company spokesperson said:
“Xiang Hu Bao has been able to process claims faster and make payments to participants, due to the decentralized, reliable nature of blockchain technology. […] Claim applicants can submit their supporting documents as evidence, while investigating agencies can get immediate access to them on the blockchain. All parties involved can see the entire process. “
Blue Cross Insurance, owned by the Bank of East Asia, also reportedly helps reduce the bureaucratic impact of the corona virus outbreak with an app for medical claims. Insurance director Patrick Wan told South China Morning Post:
“Our blockchain-supported claim service has played a key role during the outbreak of the corona virus by completely eliminating the paper process and delivering the need for back and forth documents to clinics. […] This really helps to reduce the risk of infection through personal contact. “
Blue Cross Insurance claims that its platform is capable of managing more than 1,000 transactions per second without human involvement. So far, since the launch in April 2019, the medical claims app has had an average two-digit monthly growth in the user base of policyholders. Patients using the app can see the result of their claims within one day after the hospital visit.
According to the New York Times, 811 people died from corona virus in China and the number of confirmed infections rose to 37,198. An infection of this magnitude has tried to use many proponents of the blockchain and cryptocurrency space tools to tackle the crisis.
Blockchain application developer Acoer has developed a data visualization tool called HashLog to track the deadly coronavirus that uses the distributed ledger protocol Hedera Hashgraph.
Syren Johnstone – executive director of the master in law program at the University of Hong Kong – recently suggested that blockchain and AI-driven strategies should be implemented to better address responses to the coronavirus epidemic. In addition, earlier this month, blockchain startup Hyperchain announced the launch of a blockchain-based platform to combat the coronavirus epidemic.
The corona virus also has a direct impact on the cryptocurrency industry, with multiple Asian blockchain events being postponed in response to the outbreak. Also, the Hong Kong-based blockchain draw startup Bitspark has abruptly announced that it will close, stating the virus among the reasons.