Non-life insurance industry’s blockchain-based official authentication service has practically been foundered.
Although it initially set up a relevant task force early this year, its task force only met once or twice and is not much active currently. Its process is contrasted to how life insurance industry has carried out its blockchain-based platform business smoothly with Korea Life Insurance Association (KLIA)at the center.
According to insurance industry, while life insurance industry is carrying out its blockchain platform business with KLIA at the center, non-life insurance industry has yet to establish any plan. Some even think that its plan has been foundered.
KLIA selected Samsung SDS as the business who will be in charge of its project back in May and they are working to establish blockchain platform and to implement innovative tasks based on blockchain. KLIA intends to establish and apply blockchain platform for verification process and insurance claim process.
“We are not currently planning or preparing official authentication service based on blockchain.” said a representative for General Insurance Association of Korea. “We have to decided to put off this plan for now as there are different points of views between companies on whether blockchain-based service is absolutely necessary.”
South Korean Government eliminated a clause that obligates use of official certificates in May of 2015 and pre-announced early this year legislation of ‘revised bill of Electronic Signature Act’ that abolishes official certificates by end of this year.
Blockchain technology has emerged as an alternative. It prevents counterfeits and forgery by distributing and storing certificates and it is useful in preventing robbery as it stores personal keys in safe areas of Smartphones.
This is the reason why The Korea Federation of Banks recently introduced an authentication service called ‘Bank Sign’. Also, financial investment industry and life insurance industry are working to improve their authentication systems by carrying out blockchain businesses.
Out of major financial industries, non-life insurance industry is the only one that has yet to carry out meaningful process on blockchain business.
While General Insurance Association of Korea is saying that there are different opinions between non-life insurance companies, non-life insurance companies are saying that the association needs to be at the front to carry out blockchain business.
“Blockchain-based official authentication service must be used by every financial industry just like official certificates.” said a representative for a large non-life insurance company. “General Insurance Association of Korea must take care of this since it cannot be prepared by an individual company.”
Staff Reporter Park, Yoonho | yuno@etnews.com