New York, NY - The blockchain technology has been popular in the recent two years, and many people scramble for it, but the foam of speculation in the token market is great. Many people have not realized that blockchain may have a greater effect on the human society than what we have recognized. Most projects have failed to really understand the changing role of blockchain to the transaction system of human society from the underlying logic. Instead, blockchain is only regarded as a development tool or profit-making model. Obviously, the value of blockchain has been underestimated, but in fact, its value is more than that, and it has reshaped many social behaviors of humans in many aspects. Based on blockchain, the value of human’s commercial society will be redefined, the responsibility will be cleared faster, and the operation mechanism of financial services will be improved. More importantly, the trust system of human society will be strengthened in an unprecedented way, so that many problems will be readily solved.
Since the birth of Bitcoin in 2008, developers have kept getting rid of the stale and bringing forth the fresh on the blockchain technology. The project sponsors combine with their own actual business to boost the implementation process of blockchain slowly. However, a large number of funds plate projects without any technical background entered the market from 2017. These projects did not have any application value, but gained excessive profit by issuing digital currencies. The whole industry was in chaos, and finally the token market collapsed in 2018. Recalling a painful experience, the practitioners have realized that it is futureless to only hype the market for the blockchain projects without any implementation of application. It can be seen from the future development tendency that all the assets and services of human beings will be digitized. The asset and service digitization is the greatest opportunity in the next thirty years. To achieve this, the blockchain technology should combine with the real business world and the entity economy. Only by doing this can the value of blockchain be truly brought into full play.
Blockchain is a new form of decentralized, information-sharing and consensus-based organization. It is a social revolution that redefines the collaborative relationship between all people and all organizations. All industries that involve organizational relationship between people can apply blockchain technology. In the process of blockchain application, economy is the priority field, while finance is the best field, and insurance is a typical field. Insurance and blockchain are “genetically similar”, and the “sociality” in particular offers a new perspective to reconstruct trust. Blockchain, on the one hand, can offer technical possibilities for solving the “last mile” problem of insurance innovation and, on the other hand, can provide a new perspective and implementation path for insurance. Therefore, the integration of insurance industry with blockchain technology offers enormous potential, which can become the core driving force to promote the change of business model and trigger the paradigm revolution and iterative progress of the industry.
Against this background, the Global Respiratory Network Research Foundation, headquartered in the United States and affiliated to the RTGS Committee on Payments and Market Infrastructures (CPMI), launched the KMI Project (King Mutual Insurance). KMI is a global insurance service platform that aims to solve a variety of problems in the insurance sector through blockchain technology, such as low efficiency, opaque information, insurance fraud, etc. KMI enables diverse service scenarios, including decentralized insurance mall, intelligent risk management, cross-border insurance services, diversified financial services, ecological alliance of insurance industry, etc., to help companies in the traditional insurance industry to better carry out business. Despite of the powerful KMI, the value of KMI is not limited to solving the problems in the traditional insurance industry. More importantly, the blockchain technology applied by KMI is applicable to business cooperation and interaction among multiple entities; hence it also has social properties. Thanks to the smart contract, it offers the blockchain business logic and the capacity of automatic execution of the business logic, which is characterized by a timely and fully executed asset value transfer, and is highly consistent with the natural social attributes of the insurance industry and the asset characteristic of the insurance claims. With the increasing involvement of “outsiders” in the insurance industry, it will inevitably lead to a diversification of interactions. The demand for social efficiency optimization of cooperation is exactly the driving force for the in-depth application of KMI. KMI will accelerate the reconstruction of the insurance industry conditions by reconstructing the organizational relationship and value distribution mode among the main bodies of the insurance industry chain.
On KMI, the value of insurance is reconfigured. This is not simply to digitally quantify the value of the insurance business, but to provide the necessary social credit infrastructure for the rapid development and change of the new insurance industry conditions with the support of blockchain technology and through the trust creation mechanism of blockchain. In this way, the value of the insurance industry chain’s main body can be fully released. With the gradual maturity of the blockchain technology, it will accelerate cross-border integration and scenario technology integration, thus promoting the reconstruction of the new insurance industry. In this sense, the combination of blockchain and the insurance industry can become the first step in the financial transformation of mankind. More importantly, KMI will be at the forefront of this reform.
Company: Global Respiratory Network Research Foundation
Contact: Mark Philip