The Hong Kong Federation of Insurers (HKFI) and CryptoBLK, a start-up based in the country, have jointly launched a blockchain-driven motor insurance platform that utilizes blockchain technology to counter fraud and ensure authenticity.
The platform is known as the Motor Insurance DLT-based Authentication System (MIDAS).
According to Computerworld HK, the blockchain-powered platform will make it easy for officials to verify motor insurance documents.
It is hoped that this new innovation will help to eliminate fraud and also identify fake documents designed by fraudulent insurance brokers.
Phillip Kwan, the chairman of HKFI Accident Insurance Association, has welcomed this new initiative.
“MIDAS is the first ever industry-wide application of blockchain technology in the space of motor insurance in Asia.”
He further stated that the platform will be used in the fight against fraud in Hong Kong’s motor insurance industry.
In his own words:
“This is a classic case of a public-private partnership initiative to address the perennial problem of fake cover notes in our insurance market.”
On his part, CryptoBLK’s CEO and co-founder, Dr. Duncan Wong, noted that:
“CryptoBLK is focused on developing next-generation DLT platforms that can revolutionize fintech through DLT and cryptography, and we are excited to see the official launch of Hong Kong’s new motor insurance authentication platform.”
MIDAS is an excellent example for demonstrating how DLT can be a catalyst that accelerates an industry-wide digital transformation movement.”
The MIDAS platform was developed in the course of a 12 month period. It has been subjected to several independent security audits and has passed all successfully.
It is interesting to note that the ledger keeps no storage of any information that can be used to identify an individual. This is, however, not an oversight but a deliberate feature that is meant to provide privacy to motorists.
How does this new platform work?
When car owners generate a QR code from the system, they can then use this code to authenticate their insurance cover policies and notes at the offices of the Transport Department of Hong Kong.
How long will it take for this innovation to be replicated in other countries around the world? Pen down your predictions in the comments.