APAC's bancassurers turn to blockchain to enhance offerings

CCB and AIA collaborated to offer blockchain-powered bancassurance products.

Bancassurers across the Asia-Pacific region are increasingly leveraging on the technologies offered by blockchain and APIs to enhance and expand their insurance product offerings, according to data and analytics company GlobalData.

“The open architecture integration model supported by regulators in China, Hong Kong, and India, amongst others, in a push for open banking has empowered bancassurers to seek new technologies,” GlobalData noted.

Bancassurance is on a steady upward trend in Asia amidst a relaxation in regulations and increasing affluence of its middle class population.

In fact, China Construction Bank (CCB), one of the country’s largest lenders, has teamed up with insurance giant AIA to announce the launch of blockchain-based solutions late last year to enhance their bancassurance processes.

CCB has also tapped on IBM Blockchain to support the systems network between banks, insurers and other parties.

“Blockchain appears to be the answer to past failures by providing fraction-free operations, transparency and security not only between the bank and customers but also with their insurance partners,” said GlobalData lead analyst of digital insurance Ruby Ghunia.

Beyond achieving operational efficiency and establishing trust, banks can expand their strategies by leveraging blockchain to facilitate the integration of InsurTechs for further portfolio innovation.