Insurance giant Allianz is launching a crypto payments platform related to insurance products for its corporate customers.
A company spokesperson confirmed the development to Forbes and said the platform would be token-based and “allow for frictionless, transparent and instantaneous money transfers for a range of different types of payments.” Adjoint, a Switzerland-based blockchain startup, has developed a proprietary blockchain for the German giant. The internal token is expected to simplify cross-border transfers but its regulatory footprint is still unclear. The project is in the advanced stages of development.
Benefits of Blockchain For Alliance
In an earlier interview, Allianz reinsurance blockchain expert Oliver Volk explained that the token would help the company eliminate foreign exchange constraints. For example, it would help the company conduct transactions with currencies that are not accepted at its headquarters and need to be reconverted. He also said that it would reduce the company’s reliance on the existing banking system for currency transfers. Allianz has operations in 100 countries and relies on the international banking system to move money across borders.
Allianz’s Indian subsidiary is already reported to be using blockchain to pay for flight delay insurance. The solution, called Travel Ezee, enables instant reimbursement of flight insurance using blockchain technology.
To ensure fast payments for flight delay insurance, the policy is placed on a smart contract. When a delay occurs, the claims process starts automatically and clients are paid. The concept is interesting since the claims process is initiated by the company, which tracks various flight delays, instead of the client.
With this development, Allianz has joined other companies in using blockchain to make its operations efficient. Banking powerhouse JPMorgan is said to be developing a coin similar to that of Allianz for its operations. The New York-based bank’s coin will help it conduct global transfers speedily and minus expensive regulatory costs. Facebook recently launched Libra, a cryptocurrency aimed at bringing banking services to the underbanked- and unbanked. But the project has run into a regulatory storm across much of the world.