Flashchain: Anchoring the insurance industry with blockchain technology and rebuilding industry trust

In 2016, the total assets of China's insurance industry reached 15 trillion yuan, making it the world's second largest insurance market. China's population size, population structure and aging process determine that in the near future, China will be the world's number one insurance market. As the insurance industry has gradually entered the 2.0 era in recent years, all operating entities in my country's insurance industry are promoting the development of "Internet +", and strengthening big data and cross-border data interaction has become a necessary path for the development of the insurance industry.

The future of insurance belongs to innovative business models based on new technology applications. As a distributed account system, blockchain has the characteristics of decentralization, consensus mechanism, immutability, and traceability. These characteristics are genetically similar to the insurance industry. Using blockchain technology to solve the difficulties and pain points of the insurance industry can achieve revolutionary innovation in the insurance industry.

Mr. Jin Hui, founder of Flashchain, said in an interview with Golden Finance reporter that the insurance industry is currently facing three prominent problems, namely trust, security and privacy.

Flashchain's mission is to build a decentralized network for data exchange and circulation in the insurance industry through blockchain technology. Flashchain's goal is to become a global dedicated insurance alliance chain. Further explore the anchoring technology of blockchain and insurance, improve the efficiency, security, integrity and value of the insurance industry, and achieve a win-win situation of information sharing and privacy protection, joint decision-making and interest protection.

Mr. Jin Hui has extensive experience in sales and management in the insurance industry. He served as General Manager of the Sales Department of China Life Insurance (601628, stock diagnosis) Beijing Branch, Deputy General Manager of China Life Insurance Beijing Branch, General Manager of the Key Project Department of Sunshine Property & Casualty Insurance Company, founder of the Internet auto insurance trading platform "Che Xiaobao", founder and CEO of the Internet insurance cloud service platform "Weiyun Baobei". He has worked in the front line of life insurance, property insurance, and Internet insurance for 21 years and is well aware of the "pain points" and "difficulties" of the insurance industry.

In blockchain technology, Bitcoin is the representative of the first generation of encryption technology, Ethereum is the representative of the second generation of smart contract technology, and the third generation may be "anchor technology", that is, technology that anchors specific industries and brings revolutionary progress. So, how does blockchain technology "anchor" the insurance industry? What are the typical application scenarios? Flashchain's practice is as follows:

In the field of auto insurance damage assessment and repair

Some auto repair shops falsely exaggerate vehicle damage to defraud insurance and use inferior parts as good ones during repairs. This has been a major problem that has troubled insurance companies and auto insurance customers for many years. In 2016, the national auto insurance premium income was 700 billion yuan, the compensation rate was nearly 60%, and the industry profit was only 1% (most property insurance companies suffered losses).

Flashlink stands at the forefront of insurance technology, providing blockchain technology solutions for insurance companies, auto repair companies, parts manufacturers and auto insurance users, and using the decentralized and tamper-proof characteristics of blockchain technology to identify and control fraud in auto insurance damage assessment and repair.

1. Anti-fraud in damage assessment and repair

The repair shop uploads the text information and video information (damaged parts of the vehicle and the surrounding environment) in the damage assessment to FlashChain according to the process requirements. The insurance company can retrieve and compare them on the chain, and the users who have suffered losses can query on the chain. In this way, the relevant content of the damage assessment process is placed under the joint supervision of the insurance company and the user. Due to the tamper-proof nature of the blockchain, once the information of some repair shops falsely exaggerating the damage to the vehicle is uploaded to the chain, it will become evidence for insurance fraud (criminal liability can be pursued if the amount of insurance fraud reaches 6,000 yuan), which greatly increases the cost of insurance fraud; while for insurance companies and users who have suffered losses, the efficiency of investigation and evidence is greatly improved, and the cost is extremely reduced.

2. Anti-fraud in accessories

The sale of inferior parts as superior ones in the auto insurance market has always been a major problem that auto insurance users cannot prevent. The solution is: the parts factory uploads the anti-counterfeiting information (uniqueness) of the certified parts to FlashChain, and the repair shop uploads the anti-counterfeiting information of the parts to the chain according to the process requirements during use. Insurance companies can retrieve the information on the chain, and users who have suffered losses can query the information on the chain. If the parts information is abnormal (cannot be traced or reused), the party whose interests are damaged can provide evidence and pursue responsibility.

3. Value and use of SSC (Silver Flash Coin)

SSC is a digital asset issued based on FlashChain, and its function is to realize the value transfer on FlashChain. Users who have suffered losses must pay SSC when they query information on FlashChain, and insurance companies must pay SSC when they are authorized to retrieve information from other companies in the same industry.

User market cultivation mechanism

4. Users will receive SSC rewards when consuming on the Internet refueling platform and Internet auto insurance platform, and will be informed of Flashlink’s anti-fraud function in the process of damage assessment, repair and parts replacement, as well as how to use SSC.

5. Users can also hold SSC and trade it on digital currency trading platforms for cash.

In the field of health insurance claims fraud prevention

In 2016, the total premium of health insurance was nearly 500 billion yuan. Insurance fraud in the field of health insurance is on the rise. Forged or used false medical records, prescriptions, test reports, diagnosis certificates and other medical documents to defraud insurance compensation. The implementation mechanism of FlashChain to solve the above problems is shown in the figure below:

In the field of innovation in agent business development platform

The agent development platform is divided into three backends, which are used for customer communication, smart investment advisors, and smart contracts. These three backends will be integrated into the Flashchain platform, which will be used by sales staff in the form of APP terminal tools. Sales staff can communicate with customers conveniently and at low cost in a relatively autonomous center mode, provide matching insurance products according to customer needs through smart investment advisors, and settle sales interests with the affiliated company through smart contracts. In this way, the marketing team can be truly intelligent and flat.

In the field of insurance product and service innovation

In insurance management, Flashchain technology can not only solve risk control problems, but also lay the foundation for product and service innovation through cross-regional information management. By utilizing the cross-temporal and spatial distributed characteristics of blockchain, more detailed and dynamic insurance solutions based on risk targets can be constructed to achieve personalized and efficient insurance services.

This personalized service can be arranged in advance, that is, the insurance liability under different conditions is agreed upon in the insurance contract in advance, and once the conditions are met, the insurance liability is automatically switched; it can also be arranged temporarily, that is, the insured or the insured can temporarily take out insurance or adjust the insurance conditions according to different situations and needs.

1. In automobile insurance, blockchain technology can be used to provide insurance protection based on usage status:

Application scenario 1: If the insured encounters heavy snowfall during a self-driving tour, the insurance amount can be temporarily increased, and the insurance conditions can be restored after leaving the snowy area.

Application scenario 2: The insured can change the insurance conditions accordingly while renting the car to others.

Application scenario three: The insured can temporarily arrange relevant insurance coverage while carpooling with others.

2. In life insurance, blockchain technology can be used to allow the insured to adjust the insurance plan according to their own risk status:

Application scenario 1: During the trip, the insured can expand his insurance coverage to "skiing risk" during the temporary skiing period and increase the insurance amount.

Application scenario two: When a hospital or doctor provides surgery for a patient and faces relatively special risks, they can temporarily arrange surgical accident injury insurance for the patient.

3. In property insurance, blockchain technology can be used to allow the insured to arrange different insurances based on the different uses of the property:

Application scenario 1: The insured can add theft risk protection to his/her home insurance while away from home.

Application scenario 2: When renting someone else's house, the tenant can arrange a temporary housing use liability insurance for himself to protect himself from property losses and third-party liabilities caused by negligence or fault during use.

Establishing the concept of "digital rights" and technical implementation is the core of Flashchain's reconstruction of trust

Flashchain is a "trust machine" based on blockchain technology. It can carry a large amount of data and ensure data security and privacy. When talking about the more prominent social issue of personal information privacy protection, Mr. Jin Hui elaborated on the technical characteristics of Flashchain: In order to ensure the security of data, Flashchain uses public and private key encryption signature technology for account addresses, transaction data, and transaction input and output. It supports multiple signature algorithms, including ECDSA algorithm and SM2 national secret algorithm, which can greatly shorten the signing time of private key for transaction data. Another security comes from the basic characteristics of blockchain. All accounting nodes reach a consensus to determine the validity of a record. This is both a means of identification and a means of preventing tampering. For user privacy, Flashchain uses asymmetric encryption and authorization technology. The transaction information stored on the blockchain is public, but the account identity information is highly encrypted and can only be accessed with the authorization of the data owner, thereby ensuring data security and personal privacy.

Although there are still very few blockchain application scenarios, it is foreseeable that there will be more and more blockchain application scenarios, and its subversion of the insurance industry has already begun. At the same time, it is worth noting that for any financial innovation, financial institutions must ensure that it can provide economic benefits, meet regulatory requirements, and cannot be too far away from the existing operating system. As Xiao Feng, a benchmark figure in the domestic blockchain and vice chairman and executive director of Wanxiang Holdings, said, letting a bubble in the blockchain field may be the best way to promote the development and application of technology. Let us look forward to the future of insurance on the chain!