Research Report: Global Blockchain Industry Development Panorama (2019-2020) (middle)

3.1.3 Insurance

Since the insurance industry revolves around the "trust" problem, and the blockchain can just solve the trust problem, the blockchain and the insurance industry are naturally fit and have been widely used in the insurance industry. According to incomplete statistics released by PricewaterhouseCoopers in early 2019, more than 20% of the ongoing exploration of blockchain application scenarios around the world involves insurance.

Ø Existing insurance industry model

Blockchain technology can greatly reduce the operating costs of insurance companies. At present, the operating costs of insurance companies mainly occur in underwriting and handling user claims.

In the underwriting process, insurance companies need to conduct detailed due diligence on users and insureds to ensure the authenticity of users' insurance information. The process of due diligence is often time-consuming and labor-intensive, and cannot guarantee 100% accuracy. If you inadvertently issue an order to fraudulent insurance users, it will already be a huge loss to the insurance company. For example, the critical illness insurance in the medical field requires the insured person to have no major illness at the time of insurance and provide a medical certificate. However, in some fraudulent acts, users may deliberately conceal major illnesses that they already have, and collude with medical examination institutions to issue false medical examination reports.

In the process of handling user claims, insurance companies also need to assign personnel to negotiate with customers to verify the situation. For car insurance claims, after the user issues a claim, the insurance company needs to determine whether the trace of the accident meets the payment requirements. Ideally, the insurance company sends an investigator to the accident site to determine it according to the scene; but after a traffic accident, the site is often difficult to retain. Users can only record the scene by taking pictures. In this way, the review process has an additional link to judge the authenticity of the photos, which further increases the cost. In addition, property insurance often requires the assessment of the target loss with the help of a third-party organization, and there is the possibility of artificial tampering in the certification process.

In addition, the insurance industry is also a data-intensive industry. The pricing and risk control of various types of insurance need to be based on big data analysis. For example, health insurance involves medical institutions, property insurance involves urban construction and housing authorities, and auto insurance involves traffic control. However, the relevant data currently exists in different institutions, which cannot be obtained by insurance companies. On the other hand, insurance companies also have a lot of user data in hand, which may make a certain contribution to medical care, traffic control and other aspects. However, in accordance with the business principle of confidentiality to customers, insurance companies are also unable to disclose information resources to relevant departments and administrative agencies. As a result, the efficiency of data circulation and its low level also limit the development space of data resources.

Ø Blockchain-based insurance model

With the immutability of the blockchain, the efficiency of the underwriting process can be greatly improved. If the user's health data is saved and continuously recorded on the chain, the underwriting of critical illness insurance will become very easy. The insurance company only needs to apply for the user's medical report on the blockchain to obtain the most authentic data, and all the data The update process is also recorded on the blockchain. In this way, users can no longer deceive the insurance by tampering with the medical report. At the same time, if smart contracts are introduced, the underwriting process can also be completed automatically on the blockchain, reducing labor costs. In the claims link, the smart contract and non-tampering of the blockchain can also be used to improve the efficiency of claims. In the scenario of auto insurance claims, users can upload the scene photos to the blockchain platform used by the insurance company at the moment of the accident, and stamp them with time stamps to ensure the authenticity of the evidence. At the same time, the blockchain can also convert paper contracts into programmable codes, and the claims process can also be completed automatically by smart contracts. In this way, the blockchain greatly reduces the cost of the insurance industry. According to estimates by PricewaterhouseCoopers, the use of blockchain technology in the insurance industry can save 15% to 20% of operating expenses.

In addition, the blockchain also enables data sharing between insurance companies and related institutions. The user's data can be encrypted and stored in the blockchain. When insurance companies and medical, transportation, property registration and other departments need to share data, they can send an application on the blockchain and share it after the user's authorization.

At present, many insurance giants have also begun to apply blockchain technology.

French insurance giant AXA has launched a blockchain insurance system for managing flights. The insurance system is called "Fizzy", it is a smart contract network based on the Ethereum platform, which scans data sources to obtain flight delay information. If these flights meet the reimbursement conditions stipulated in the insurance contract, the payment will be automatically triggered based on the smart contract. At present, the pilot of the Fizzy system only covers direct flights between Charles de Gaulle Airport and the United States for the time being, but it allows us to see the future application of blockchain in the field of aviation insurance.

Bluestone Technology cooperated with the technology insurance platform, using big data + the underlying technology of the blockchain, to establish a risk actuarial and risk management platform for non-standard people. At the same time, it has cooperated with health and planning committees, top three hospitals, and professional medical institutions in various places, accessing multiple places and multiple medical institutions, establishing the largest domestic alliance chain serving insurance scenarios, and obtaining a large amount of accurate medical treatment and expenses. The data, and based on the accurate analysis of these data, the first anti-cancer insurance for cancer patients with cancer insurance in China, the first to provide 65-year-olds, chronically ill people, etc. provide a variety of differentiated insurance products. Bluestone Technology uses block chain technology to integrate and write insurance product information and information on the insurance process, circulation process, marketing process, and claims process into the block chain, achieving full process traceability and data disclosure between parties to the transaction Transparent. As of December 2017, the number of paying users has exceeded 800,000, and the monthly premiums have exceeded 10 million. It has established business cooperation with multiple institutions in multiple regions. In Liaoning alone, it has established cooperative relations with more than 40 hospitals, more than 200 educational institutions, and nearly 1,000 elderly care institutions.

 

3.1.4 Supply Chain Finance

According to data from the Prospective Industry Research Institute, the scale of China's supply chain financial market was 13 trillion yuan in 2017. This number is expected to grow to 15 trillion yuan in 2020, and the market is huge. Supply chain finance will be born out of supply chain management. It takes the core enterprise as the starting point and focuses on the financing appeals of small and medium-sized enterprises around the core enterprises. Through the effective transmission of information and resources in the supply chain system, the operation efficiency and efficiency of the supply chain are improved. Overall competitiveness, activate supply chain operation, realize the common development of various enterprises in the supply chain, and continue to operate

The financing modes of supply chain finance mainly include accounts receivable financing, confirming warehouse financing and financing warehouse financing. Accounts receivable financing refers to a financing model in which small and medium-sized enterprises in the upstream and downstream of the supply chain can use unexpired accounts receivables to lend to financial institutions under the premise that the core enterprises of the supply chain promise to pay. Confirmed warehouse financing refers to financing services provided by banks and other financial institutions to downstream enterprises in the industrial chain. Rongtong warehouse financing refers to banks and other financial institutions accepting the movable property provided by small and medium-sized enterprises as collateral, combining the guarantee of core enterprises and the supervision of logistics companies to provide financing services for small and medium-sized enterprises. Among them, the supply chain finance participants mainly include: core enterprises in the supply chain, large-scale suppliers, small and medium-sized suppliers, capital banks, factoring companies, lending companies, etc., and logistics companies that provide third-party support services.

The core significance of supply chain finance lies in the fact that small and medium-sized suppliers have a low credit line and a small financing scale. The credit substitution mechanism is used to replace the small and medium-sized supplier credits with the core enterprise credit of the supply chain to meet the needs of upstream and downstream enterprises in the supply chain. . For the lending bank, the bank needs to understand the operation of the enterprise in real time, including its procurement, production, sales, customers, projects, inventory, human resources, finance, office and other operational data, will be able to grasp the enterprise's situation and control the loan risk . However, because of the high risk of data fraud and the high cost of bank adjustments, this approach has not been widely used, so it also poses a problem of difficulty for small and medium-sized enterprises.

For supply chain finance, improving the authenticity, timeliness, and accuracy of the three flows of "goods flow, information flow, and capital flow" is crucial. The better the integration of the three streams, the higher the efficiency of the entire supply chain operation. Since the supply chain includes different participating entities such as trading, logistics, warehousing, and financial institutions, and a large number of intermediate links, authenticity is the most critical issue in the "three-stream" supervision. Blockchain technology can use its non-tampering, traceability and other characteristics to reduce the cost of trust and the financing cost of small and medium-sized suppliers in the supply chain during this process, making the core meaning of supply chain finance easier to realize.

Based on the blockchain, cross-entity and cross-departmental information can be achieved, data barriers between regions, departments, and systems can be broken, relevant data can be synchronized in real time, and data cannot be tampered with through the underlying blockchain system. On this basis, for credit financing scenarios, such as accounts receivable financing, SMEs can borrow the core enterprise's credit based on the blockchain, and the credit resource liquidity is enhanced to achieve the core enterprise's credit transfer purpose. At the same time, for cargo mortgage scenarios, such as financing of warehouse financing, it can also be combined with front-end data collection technologies such as the Internet of Things to ensure the authenticity of logistics source data, so that banks can grasp the situation of the enterprise and realize risk control based on the data. No matter what kind of financing method, the use of blockchain to solve the trust problem can give SMEs more financing opportunities. ewnkVlEo3CytUwCMuAy5vpk3kyLyRMpWdtdvJDX9.png

Micro-enterprise chain is a "supply chain finance + blockchain + ABS platform" jointly created by Tencent's Tencent Financial Technology and Lian Yirong. Through the non-tamperable and traceable characteristics of the blockchain, the credit penetration of core companies can be covered to long-tail suppliers, improving the availability of financing for small and micro enterprises and reducing financing costs. At the same time, financial institutions can also serve small and micro enterprises in batches and obtain low-risk and high-yield assets through the platform; core enterprises can also optimize supply chain management and achieve low-cost technological innovation through the platform. The exploration and application of blockchain + supply chain finance has begun to take shape. Current representative projects include Tencent's micro-enterprise chain, complex and beautiful blockchain supply chain financial platform, and Bubi's Inno Finance.

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Wanxiang Blockchain Lab launched a supply chain financial service platform based on blockchain technology, which manages the key business data of transactions between core companies and their upstream suppliers, and introduces financial institutions into the platform. First, the immutability of the blockchain and the characteristics of multi-party bookkeeping ensure the authenticity of recorded transactions on the platform and the transparency of system operation rules, which can prevent illegal transactions. Secondly, bills and contracts are electronically stored and circulated, and business processing is more efficient and business costs are lower. In addition, the electronic vouchers on the chain can be split and transferred indefinitely, can be discounted, and can be financed, which is conducive to alleviating the pressure of funds for SMEs. In addition, the records on the chain can be traced and traceable, which can effectively alleviate the degree of information asymmetry and realize the supply chain business visualization. At the same time, through the access of information from core companies, the underlying real trade information can be continuously and effectively disclosed to form digital assets. Financial institutions can easily grasp the operation of small and medium-sized enterprises, and small and medium-sized enterprises can quickly and quickly Financial institutions get financing. On the other hand, asymmetric encryption technology can realize the targeted display of data in the process of transactions and financing to protect business secrets.

The platform has provided landing services for Jiangxi Bank, Zhengbang Technology and its suppliers. In cooperation with Jiangxi Bank and Zhengbang Technology, Jiangxi Bank provides financing services to Zhengbang Technology and its upstream suppliers in a reverse factoring (acceptable transfer of accounts receivable) model. As a central enterprise, Zhengbang Technology and its subsidiaries accept Jiangxi Bank's credit line, confirm the right to obtain bank funds for their upstream suppliers, and return the bank funds on the due date of accounts receivable. The supplier can use the accounts receivable on the corporate book as payment and settlement and financing tools, and can pay or finance externally at any time. This move can effectively solve the problem of information asymmetry between small and medium-sized suppliers and Jiangxi Bank, which can not only help Jiangxi Bank better serve private and small and medium-sized enterprises, but also enable small and medium-sized enterprises to obtain the benign funds needed for development. Suppliers use the platform and online to apply for contracts and invoices confirmed by Zhengbang Technology to apply for financing, which greatly shortens the receivables cycle. The supply chain financial platform has helped many enterprises, especially small and medium-sized enterprises, to obtain the financing necessary for the development of multiple businesses. As of December 2019, the total financing amount on the platform has exceeded 250 million yuan.

The complex US blockchain supply chain financial service platform became the first batch of products that passed the China CITIC-Trusted Blockchain pre-test in September 2017. In September 2018, 33Zhongmei and China Light Industry Enterprise Investment and Development Association jointly released the "China Light Industry Industry Supply Chain Financial Service Platform". In the future, 33Zhongmei will provide tens of thousands of assets for more than 80 industries under the China Light Industry Enterprise Investment and Development Association. Each member unit builds a blockchain supply chain financial platform, uses blockchain technology to improve the credit of SMEs, and improves the efficiency of capital flow.

Yinuo Finance is a self-developed and operated blockchain supply chain financial network platform by Bubi in May 2017. The platform relies on the real trade background in the industry chain and the payment credit of the core enterprise, and uses the distributed treasury feature of the blockchain that cannot be tampered with and shared by multiple parties. Block-chain accounting voucher that can be split, circulated, held due, and financed. Release/transfer core corporate credits while breaking information asymmetry, reducing trust costs, and high risk of capital flow, etc., optimize capital allocation; bring financing feasibility and convenience to suppliers in other links; provide more investment for financial institutions Scenario to achieve cost reduction and efficiency increase in the supply chain financial business field. By creating an ecological network of "supply chain + block chain = industry chain", it can effectively improve the capital transfer efficiency of the entire industry chain under the current fragmented economy and help The rapid and healthy development of the real economy.

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 At present, Yinuo Finance has been applied in the fields of prepaid account financing, confirmed warehouse, inventory pledge, factoring, multi-level restructuring, ABS/ABN, trust and other fields, and has developed a complete product system. In addition, it has established cooperative relations with more than one thousand companies including Guiyang Bank, CICC Pay, Sinotrans, Pangang Group, Foxconn, and SDIC Group to provide them with product design, technical support, operation and maintenance, professional consulting and other services to jointly explore the block The application of chain in different industry scenarios.

3.2 Supply Chain
3.2.1 Anti-counterfeiting traceability

Anti-counterfeiting traceability refers to the tracking records of production, processing, transportation, circulation, retail and other links of agricultural products, industrial products and other commodities. It is achieved through the extensive participation of all parties in the upstream and downstream of the industrial chain. Traditional anti-counterfeiting traceability records and transmits product production and circulation information through two-dimensional codes, barcodes, RFID wireless radio frequency technology, etc., so as to provide multi-link collaborative behaviors for vouchers for inquiry, accountability, management and other traceability activities. Nonetheless, according to data from JD.com, the global market affected by counterfeit and shoddy commodities is as large as US$300 billion, of which the annual turnover of counterfeit and shoddy commodities has accounted for 10% of the world's total trade. Various food and drug safety incidents occur frequently. Traditional anti-counterfeiting traceability mainly faces the problems of centralized data storage, easy tampering, difficult government supervision, and data dispersion in circulation.

Please read the Chinese version for the details.