Korean Business Heavyweights Team up for Blockchain Insurance Project
Two of South Korea’s biggest conglomerates will team up to create a blockchain-based insurance offering. The deal will see the Lotte Group’s insurance arm, Lotte Insurance, join forces with the Hyundai Group’s blockchain and crypto subsidiary Hdac for an unprecedented cooperation effort.
Per Fn News, the deal will also involve another leading insurance provider, Insurovo, and software firm TmaxData. Hdac operator Hyundai BS&C, the Hyundai Group’s IT services and construction arm, will also join the project.
The firms said they will co-build a “convergence platform” that will make use of blockchain technology and blockchain-powered decentralized ID (DID) authentication developments. The firms have expressed a desire to speed up progress in the fast-growing “insuretech” (insurance + IT) industry – and will be one of Hdac’s first major commercial ventures.
Some have recently suggested that Hdac could look to “rival” chat app giant Kakao, which has enjoyed success with a number of crypto and blockchain-related offerings this year.
The firm has previously launched a token in Europe via a subsidiary, but last year pledged to spend big on a new mainnet, with two new crypto-themed brands registered as trademarks in South Korea this year.
Earlier this year, Lotte’s logistics arm announced that it was looking to implement blockchain-based solutions to its vast global deliveries and shipping network.
The five firms’ plan involves using blockchain smart contract technology in what they call “key parts of the insurance industry,” including the initial screening process. They claim that the innovation will help boost convenience and efficiency for users, and better support data management efforts.