AIA launches Hong Kong’s first blockchain-enabled bancassurance
In View Summary
AIA has launched a new blockchain-enabled bancassurance solution in partnership with its bank partners – a first for the bancassurance channel. This platform is based on the Hyperledger Fabric, an open collaboration hosted and supported by the open source Linux Foundation.
This solution is essentially enabling AIA and its bank partners to share policy data and documentation on a real-time basis with reduced processing times and increased transparency.
AIA’s initiative represents an interesting approach to streamlining the interlocutor that exists between insurers and banks
AIA HK’s CTO Man Kit has remarked of the effort that: “AIA Hong Kong is committed to continuously improving our customer experience through innovation and employing the right new technologies. Blockchain technology has the potential to deliver significant benefits for customers by enabling AIA to provide faster service with increased security and transparency.”
Ultimately, as bancassurance still delivers a significant percentage of revenue for life insurers, this initiative represents an interesting approach to streamlining the interlocutor that exists between insurers and banks (product requirements, product development data, product conversion rates per bank channel and commission data etc).
Although blockchain as a technology is still in its nascency, its potential to streamline the relationship between insurers and banks is an exciting one, and a use case that is worthy of exploration despite the uncertainty that currently surrounds blockchain.
Benefits to customers
Improved policy processing times
Real-time information accessibility
Benefits to insurers
Saves time and costs
Improved turnaround times
Increased consumer engagement
The Digital Insurer's View
One of the persistent issues encountered when attempting to digitize the bancassurance channel is the integration of insurers IT systems with legacy bank systems. With AIA’s current blockchain implementation system, the integration issue has been tackled with a decentralised approach that allows banks to pick and choose which software stack to inter-operate with.
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