Hong Kong to Use Blockchain for Motor Insurance Industry

Hong Kong Federation of Insurers moves along in creating a e-platform to allow insurers more efficient access

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The self-regulator in the financial industry, the Hong Kong Federation of Insurers is in the process of creating an e-platform on the blockchain. The HKFI plans to use the platform to record and track data related to motor insurance sector in Hong Kong.

The Secretary of Financial Services and the Treasury Bureau in Hong Kong, James Lau, publicly spoke on his belief that the use of blockchain technology will give a great boost to Hong Kong’s motor insurance industry. Lau, made this statement at the Annual Reception event of Hong Kong Federation of Insurers.

The advantage of using blockchain expands to having secure and easy access to data on the motor insurance e-platform. As Lau suggests, this is the advantage the HKFI will receive with the technological advancement to embrace distributed ledger technology. Further, Lau made the following statement;

The use of blockchain technology can raise business efficiency and allow insurers to enjoy easy and secure access to timely and accurate data. In this regard, I am glad to note that HKFI is developing a blockchain e-platform for motor insurance. I encourage the insurance industry to continue to devote more resources to embrace Insurtech.

HKFI on blockchain development

The self-regulatory organization HKFI, was formed in 1988 with the intention of ensuring professional conduct of the insurance industry and to prevent claim fraud. The insurance industry is one of the few industries that enjoys a high degree of self-regulation complemented by the prudent regulatory framework of the government in Hong Kong.

Lau’s statements painted a picture on the ongoing urge to go on the blockchain, among the financial sectors and governing bodies in Hong Kong. It seems countries are believing more and more that blockchain development plays a vital role in the improvement of services in different sectors and industries.

The Secretary, James Lau also made an earlier remark stating the possible advantages of using blockchain technology to implement the “Belt and Road” initiative of China.

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