New York, NY - The insurance industry has a long history. As early as around 2,500 BC, the kings of the ancient Babylonian kingdom ordered monks, judges and village chiefs to collect taxes as relief fund for fire disasters. Throughout the human history of thousands of years, the insurance industry has always been with us in our production and life. Since the entry of modern era, technology has permanently changed many industries. However, seen in many aspects, the trillion-dollar insurance industry is still at a standstill state.
Under the category of financial industry, insurance is an industry with a low threshold of information technology. The information pathway between insurance companies and customers should have been very smooth, and the mutual trust should have been at a high level. However, for historical reasons, the insurance industry has become highly intermediary. It is mainly manifested that a large amount of insurance business is transacted through insurance salespeople or intermediate channels, which invariably raises the application cost of insurance companies and end users. In addition, problems such as insurance fraud, difficulty in risk control and inefficient claim settlement are also rife in the insurance industry.
It seems that these problems involve many aspects, and appear to be complicated and difficult to solve. However, by seeing through the appearance, we will find out that the root causes are the low efficiency and the industrial opacity caused by the centralized structure. Under the centralized framework, for a lack of supervision from outside, the centralized organization will surely keep expanding to earn the maximum profit in spite of damaging the interest of users continuously. To solve these problems, we must smash down the centralized organization to make the industry more transparent. Therefore, we need to use the blockchain technology.
The far-reaching development prospects of blockchain technology have been foreseen by many people, and therefore many industries are scrambling to join the research and development of blockchain. The industry characteristics of the insurance industry and blockchain fit well together, and blockchain technology serves as an impetus in the core competencies of all insurance companies. It is a trigger point for the entire insurance industry to change its business model, and such new model will bring added value to insurers, reinsurance companies, insurance brokers, agents, etc. Besides, it can effectively evaluate and price risks, and create smart products in the insurance market. Back in 2001, the use of digital currency by CyberCash Company enabled them to be insured by the U.S. Federal Deposit Insurance Corporation (FDIC). This was the first combination of the insurance industry and the blockchain technology. Since then, there has been a steady stream of insurance industry projects seeking industry solutions in blockchain technology. The most famous case is KMI.
In order to accelerate the development of blockchain technology in the insurance industry, speed up the pace of pilot projects, and explore the potential use cases of blockchain technology in the insurance industry, in 2019, King Mutual Insurance (hereinafter referred to as "KMI"), a global digital insurance platform built on blockchain technology, was officially established in the United States.
The standard-setter for KMI is the Global Respiratory Network Research Foundation ("GRNRF"). Headquartered in the US, and as a part of the RTGS Committee on Payments and Market Infrastructures (CPMI), it was jointly established by several blockchain industry research institutions, international insurance and financial service institutions and venture capital institutions in the blockchain field. By monitoring and analyzing the development of payment, liquidation and settlement systems in each country, GRNRF will strengthen the communication and cooperation role of central banks/insurers in the field of payment system regulation, focus on the popularization of blockchain knowledge and the innovation in technology industry, academia and research, and accelerate the industrial development of blockchain technology in the world, so as to promote the safe and efficient operation of payment, liquidation and settlement system in each country, and support the stable development of finance and macro-economy.
- KMI is a global insurance service platform that aims to solve a variety of problems in the insurance sector through blockchain technology. Its service orientation includes the following three parts:
- Enhance the efficiency of insurance services and reduce the connection cost of both parties.
- Improve the digital insurance ecosystem and realize more insurance service functions.
- Provide more insurance application scenarios for users and achieve convenient and fast digital currency payment.
KMI Service Direction
With KMI, diverse service scenarios can be realized, including decentralized insurance mall, intelligent risk control, cross-border insurance services, diversified financial services, insurance industry ecological alliance, etc. Every main body in the insurance industry chain can enjoy the progress brought by technology, and on KMI, they can quickly and conveniently conduct transactions and enjoy the value of insurance with confidence. All users' activities such as information transmission, asset transaction and fund distribution will be protected and supported by blockchain technology. In this sense, KMI will become the "insurance" of the insurance industry, thus helping the insurance industry to develop in a more standardized and orderly manner.
Insurance is the greatest human invention in the field of economy, while blockchain technology represents the future direction of development. What changes will be brought to the world insurance market and even the financial system from the combination of the two? Let's focus on KMI, which is perhaps the most important step in the digitization of human social service system.
Company: Global Respiratory Network Research Foundation
Contact: Mark Philip