MetLife has just announced that it plans to leverage blockchain technology to transform the insurance industry.
The insurance giant plans to use the emerging technology to add efficient transparency to the claims process.
MetLife has an annual revenue exceeding $60B.
This is the first time a major insurance provider has piloted a program on Ethereum.
The project is called ‘Lifechain’ and it is a collaboration between MetLife’s Singapore-based LumenLab, Singapore Press Holdings (SPH), and NTUC Income.
The idea behind the pilot program is simple: ‘Lifechain’ will be a platform of smart contracts which will assist loved ones in determining whether their deceased family member was protected with a policy. The platform will automatically file a claim if so.
MetLife has faith that the pilot program will be a success. In fact, if proven to be effective, MetLife would be the first to formally implement Ethereum’s network in the insurance industry. This could naturally revolutionize the industry and lower prices across the board. Moreover, it would make the entire process much more transparent.
Understanding Lifechain
The pilot will run on Ethereum’s public ledger. Once an obituary is recorded in one Singapore Press Holdings’ subsidiary media outlets, the family is informed of Lifechain. If the family agrees, their deceased loved one’s National Registration Identity Card (NRIC) will be encrypted on the Lifechain platform. The Death Certificate’s NRIC number will be assigned a hashing algorithm and added to the Ethereum public ledger.
Once encrypted, NTUC Income will match the NRIC number with a matching life insurance policy. If there is an existing plan, the family members will be informed by Lifechain. An automatic notification is sent which initiates the claims process.
A Changing Insurance Industry
MetLife’s ambitions on Ethereum could have profound implications for the industry, if successful. However, it is also interesting to note that the insurance giant opted to use Ethereum’s public ledger. This is arguably a step in the right direction.
As many prefer their own private blockchains, a step towards a decentralized world will have to rely on public ledgers first and foremost. This allows for complete transparency since information can be verified via its hash for all the see.
Do you believe MetLife’s pilot blockchain could revolutionize the industry? Let us know your thoughts below.