Hong Kong to use blockchain versus motor insurance fraud
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 system, known as the Motor Insurance DLT-based Authentication System (MIDAS), will allow easy verification of motor insurance documents to prevent fraud and spot fake documents produced by illegal insurance brokers, Computerworld HK reported.
MIDAS was developed over a 12-month period and has passed independent security audits. In order to protect the privacy of motorists, the ledger does not store any personally identifiable information. Car owners can use a system-generated QR code to have their insurance cover notes and policies authenticated at the Transport Department’s offices.
“MIDAS is the first ever industry-wide application of blockchain technology in the space of motor insurance in Asia,” HKFI Accident Insurance Association chairman Philip Kwan said. “This is a classic case of a public-private partnership initiative to address the perennial problem of fake cover notes in our insurance market.”