Chain B is a Chinese blockchain startup that is the first blockchain startup in China to target the hyper-competitive insurance industry.
Chain B was founded in 2016 and CEO, James Gong, has summarised his company’s motivation to launch blockchain-backed insurance products: “The insurance industry is a very interesting space for blockchain. A decentralised network can provide multiple validation points for claims without the costs associated with traditional insurers loss adjusting process”.
As with all Chinese insurance startups, user acquisition is a challenge. To address this, Chain B is partnering with local blockchain evangelists in order to acquire an initial customer base. Additionally, Chain B will focus on niche insurance products such as redundancy insurance and renters default insurance. Finally, claims will be validated through the authorization of multiple participants (fellow policy holders) along the blockchain.
Ultimately, the Chinese Insurance Regulatory Commission is currently monitoring blockchain based startups very closely. As blockchain based currencies are not considered legal tender in China, they cannot be exchanged for RMB within China. In China, insurance blockchain startups such as ChainB are carefully treading the line between using blockchain to facilitate claims validation and claims processing. The former is open to innovation as per regulatory rules, the latter cannot be encroached upon by Chinese insurance players.
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