Blue Cross, a Hong Kong-based insurance firm and insurance unit of The Bank of East Asia, has launched a blockchain-based solution with the objective of streamlining the medical insurance claims process, preventing fraud and reducing costs, according to a report by South China Morning Post.
Although competitors, such as Prudential, HSBC Life, and Bowtie Insurance, already offer online insurance claims, none of these businesses have employed blockchain technology for claims processing.
With real-time validation of data and transactions enabled by blockchain, the Blue Cross can eliminate fraud while speeding up the overall process for claims, according to Managing Director Patrick Wan. He claimed that the firm will be able to cut costs as blockchain “eliminates the need to reconcile medical claim data across various parties.”
According to Wan, Blue Cross has reportedly been investing 10-20 percent of its yearly expenditure on information technology, as part of its development of insurance technology (insurtech).
It was reported that the blockchain solution launched by Blue Cross is a permission-based network based on Hyperledger.
According to William Yeung, Co-founder of blockchain-based medical app developer MediConCen, the solution will help reduce the time required to process claims for Blue Cross’s insurance claimants and clinics.
“The efficiency and convenience of blockchain also means that more doctors, Chinese medicine practitioners and chiropractors who do not employ a lot of support staff for administrative work, could be attracted to the Blue Cross doctor network,” Yeung said.
The insurance firm’s application of distributed ledger technology marks the latest foray into blockchain in the financial hub. Last year, the Hong Kong Monetary Authority (HKMA) announced the official launch of a blockchain-based trade finance platform, dubbed eTrade Connect, supported by 12 major banks in Hong Kong.
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