Chinese insurers handle coronavirus cases with blockchain technology

Insurance companies in China use block chain technology to manage claims related to the corona virus. The English-language local news site South China Morning Post reported on February 9 that China’s online mutual assistance platform Xiang Hu Bao added the coronavirus to the list of diseases eligible for the maximum one-time payout of about $14,300 (100,000 yuan) this month.


Processing of insurance claims with the help of Blockchain

Xiang Hu Bao is not an insurance company, but a block-chain-based collective loss sharing platform with 104 million users. According to the report, the block-chain technology is used for fraud prevention and faster claims processing.

Xiang Hu Bao is owned by the Chinese financial giant Ant Financial and uses its mobile payment processing service AliPay, which finances payouts for coronavirus victims with its own capital. A company spokesman said:

“Xiang Hu Bao was able to process claims and make payouts to participants faster because the block chain technology is decentralized and trust-free. […] Claimants can submit their documents as evidence, while investigative firms have direct access to them on the block chain. All parties involved can view the entire process.”


Less paperwork thanks to Blockchain

Blue Cross Insurance, which belongs to the Bank of East Asia, is also helping to reduce the bureaucratic impact of the coronavirus outbreak with an app for medical claims. The insurer’s CEO, Patrick Wan, told the South China Morning Post:

“Our blockchain-based claims service plays a key role during the coronavirus outbreak by completely eliminating the paper process and the need for back and forth document delivery to clinics. This really helps to reduce the risk of infection through personal contact”.


Blue Cross Insurance states that its platform is capable of managing over 1,000 transactions per second without human involvement. Since its launch in April 2019, the medical claims app has seen double-digit average monthly user growth. Patients who use the app can see the result of their claims within one day of their hospital visit.



According to the New York Times, 811 people have died in China as a result of the coronavirus. The number of confirmed infections now stands at 37,198, and supporters of blockchain technology are advocating its use in solving the crisis because of its specific advantages.

Blockchain developer Acoer released a data visualization tool called HashLog based on the DLT protocol Hedera Hashgraph, which can be used to track the deadly coronavirus.

Syren Johnstone – Executive Director of the Masters Degree in Law at the University of Hong Kong – suggested implementing blockchain and AI-based strategies to better respond to the coronavirus epidemic. In addition, the blockchain startup Hyperchain announced earlier this month the launch of a blockchain-based platform to combat the coronavirus epidemic.

The coronavirus also has a direct impact on the crypto-sector. Several blockchain events in Asia have been postponed in response to the outbreak. Hong Kong-based start-up company Bitspark, a provider of blockchain transfers, announced its sudden closure, citing the coronavirus as one of the reasons.