Two of South Korea’s heavyweight 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.
As announced by Fn News, the project will also include another chief insurance provider, Insurovo, and TmaxData. Hdac operator Hyundai BS&C, the Hyundai Group’s IT services and construction arm, will also join the project.
The firms announced they would co-build a “convergence platform” that will use blockchain technology and blockchain-powered decentralized ID (DID) authentication advancements. The firms have communicated a desire to speed up progress in the fast-growing “insuretech” (insurance + IT) industry and be one of Hdac’s first major commercial ventures.
A few have lately proposed that Hdac could look to “rival” chat app giant Kakao, which has experienced their limelights with several cryptos and blockchain-related contributions this year.
The firm has earlier launched a token in Europe via an auxiliary, but last year promised to spend big on a new mainnet, with two new crypto-themed brands listed as trademarks in South Korea this year.
This year, Lotte’s logistics arm declared that it was looking to implement blockchain-based solutions to its vast global deliveries and shipping network.
The five firms’ plan includes using blockchain smart contract technology in what they describe as “key parts of the insurance industry,” including the initial screening process. They declare that the enhancement will help boost users’ convenience and efficiency and better support data management applications.