Hong Kong has reportedly developed a new weapon to combat insurance fraud, Insurance Business Asia reports:
Hong Kong-based start-up CryptoBLK and the Hong Kong Federation of Insurers (HKFI) have launched a motor insurance platform that harnesses blockchain to ensure authenticity and counter fraud.
The platform is called the Motor Insurance DLT-based Authentication System (MIDAS), and Insurance Business Asia – citing Computer World HK – says that system allows for the “easy verification of motor insurance documents to prevent fraud” as well as the spotting of “fake documents produced by illegal insurance brokers.”
HKFI Accident Insurance Association chairman Philip Kwan calls MIDAS the “first ever industry-wide application of blockchain technology in the space of motor insurance in Asia,” adding that it is a classic case of a public-private partnership initiative to address the perennial problem of fake cover notes in our insurance market.”
The system was purportedly developed over a 12-month period and it has reportedly passed several independent security audits. The ledger doesn’t store private information to protect motorists, and a system-generated QR code can be used by car owners to “have their insurance cover notes and policies authenticated at the Transport Department’s offices.”
Photo: Chris Brown from Melbourne, Australia