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Coronavirus Insurance Payouts Can Be Processed on Blockchain, Virus Disrupts Crypto Events

Summary:
As the world is joining efforts to help with coronavirus treatment and spread, the blockchain technology is now being employed for related insurance payments.Blockchain technology is now seeing some new applications because of the deadly coronavirus. According to a recent report from the South China Morning Post, a mutual aid service known as Xiang Hu Bao has now started using blockchain technology to process insurance claims related to the coronavirus from its many customers.Blockchain Used for Coronavirus Insurance ClaimsAccording to the report, Xiang Hu Bao is a mutual aid platform owned and operated by Ant Financial Services Group, formerly known as Alipay. The company has now added the coronavirus to its list of factors that make registered persons eligible for payment. This payment

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As the world is joining efforts to help with coronavirus treatment and spread, the blockchain technology is now being employed for related insurance payments.

Blockchain technology is now seeing some new applications because of the deadly coronavirus. According to a recent report from the South China Morning Post, a mutual aid service known as Xiang Hu Bao has now started using blockchain technology to process insurance claims related to the coronavirus from its many customers.

Blockchain Used for Coronavirus Insurance Claims

According to the report, Xiang Hu Bao is a mutual aid platform owned and operated by Ant Financial Services Group, formerly known as Alipay. The company has now added the coronavirus to its list of factors that make registered persons eligible for payment. This payment is a one-time payout with a 100,000 yuan ($14,320) maximum.

According to the news report, Xiang Hu Bao is not an insurance policy by normal definition. Instead, it is a claim-sharing platform powered by blockchain technology. Its main business is to offer primary health plans to its registered participants numbering about 104 million. The company focuses on members of the Chinese population that live in rural areas and counties. 

The coronavirus claims will run side by side with a different health plan from the platform which caters to 100 other serious diseases. The latter has a maximum payout of 300,000 yuan, which is about $42,950.

How Blockchain Helps with Coronavirus Insurance Payout

The issuance of this payout has become a lot more effective and faster through the use of blockchain technology. There is also a lot more transparency as all parties are privy to the transaction. Speaking on the method, a spokesman with Ant Financial said:

“Xiang Hu Bao has been able to process claims and make payouts to participants quicker, due to the decentralised, trust-free nature of blockchain technology. Claim applicants can submit their supporting documents as evidence while investigation firms can get immediate access to them on the blockchain. All parties involved can see the entire process.”

The mutual aid platform is not specifically directed at healthcare financial aid such as medication. The Chinese government intends to handle expenses incurred in treating the coronavirus. This means that the payout is directed at other “hardships linked with the illness.”

Coronavirus Effects On The Crypto Market

So far, the coronavirus seems to have some extremely polar effects on the crypto markets.

On one hand, many believe that the coronavirus is the reason there is a rise in Bitcoin’s value. Bitcoin has proven itself as a safe haven in times of uncertainty and the current coronavirus outbreak seems to fit perfectly into this type of instability.

On the other hand, the outbreak has a few negative effects on the crypto market. This is because the lockdown and the general fear of a spread have caused an unavoidable pause in several crypto events.

According to a Bloomberg report, crypto lending firm DeFiner has pulled the plug on plans for a tour because of the outbreak. Also, the Chinese government shut down a server farm belonging to the BTC.top mining pool.

The virus has also caused a postponement of certain crypto events. They include the Hong Kong blockchain week 2020, the TOKEN2049 and the NiTROn 2020 in Seoul, South Korea.

Bitcoin (BTC), Blockchain News, Cryptocurrency News, News
Tolu Ajiboye
Author: Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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