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CCB Asia, IBM develop blockchain bancassurance product in HK

China Construction Bank Asia (CCB Asia) and IBM have developed the first blockchain enabled bancassurance project in Hong Kong.

Bancassurance -- insurance products sold by banking institutions – involves a bank and insurance company forming a distribution partnership to allow sales associates of a bank to sell the insurance company's products directly to the bank's client base.

CCB Asia and IBM have developed a blockchain-based solution to streamline and enhance the bancassurance process and improve the customer experience though faster transaction processing time and increased transparency.

Using the system, CCB Asia and all parties on the blockchain now have a shared view of required policy data in real-time, reducing the need for status checks which can delay processing time.

Blockchain's inherent security through the use of distributed ledgers also improves accountability and transparency among network participants.

The platform is currently under testing with insurance providers and their clients, and is expected to be available in the third quarter of 2017.

“As one of the most active global financial hubs, Hong Kong plays a key role in embracing fintech to drive further development of its banking and finance industries. CCB Asia is dedicated to offering a wide array of banking products and services to customers, and we strive to leverage new technologies to bring more products, more choices and better experience to our customers,” CCB Asia deputy CEO Guo Zhipeng said.

“After the successful launch of this blockchain-enabled bancassurance project, we plan to extend our experience to other insurance partners in order to optimise our overall bancassurance business.”