National Chengchi University
  • 2020 Sep 18
  • National Chengchi University Global ResearchIndustry Alliance (NCCU GloRIA) "ChallengesResponse Measures of the Insurance Industry in Building Cross-Industry Data Exchange Platforms" Conference
In the second half of 2020 during this era of pandemic, higher expectations are set for financial services to surpass the restrictions of time and place and to embed themselves in everyday life. Addressing the trend of integrating innovative financial services into life scenarios, both emerging FinTech service providers and traditional banks are faced with business challenges while the financial ecosystem is more eager to apply even more technologies to digital scenarios. Since July 1st, 2020, eleven domestic property and life insurance companies have introduced blockchain technology to conduct a trial of developing an insurance conservation and claims alliance chain focused on achieving the goal of common documentation for changes/claims applications under unified policies. This conference focuses on 2 major aspects, including the testing framework of insurance blockchain and the creation of a cross-industry data exchange platform, and analyzes the challenges which will be faced as well as measures to address them. The NCCU GloRIA and FinTech Research Center (FTRC) hope to meet with experts and industry pioneers to discuss the future of InsurTech in the latter half of 2020, in the post-pandemic era, as well as provide feedback for the issues and pain points in terms of technology, policy, and regulations.
Due to the impact of the pandemic, this year's “Challenges and Response Measures of the Insurance Industry in Building Cross-Industry Data Exchange Platforms” conference returned with much fanfare. The 2020 event will continue in the footsteps of 2019's “FinTech Policy Revision Conference” series by extending invitations to professionals from relevant fields and discussing technology, policies, and regulations with respect to the current issues facing FinTech. NCCU FinTech Research Center's director Wang Lee-ling and NCCU InsurTech Application Lab CEO Peng Jin-lung introduced and hosted the event. Director Wang stated that the FTRC is dedicated to bridging the industry and the academia to analyze the current roadblocks in policy and regulation, generate solutions through discussions, and build consensus. Addressing this seminar's theme, CEO Peng believes that the future challenges of the insurance industry are whether interfacing cross-industry data platforms can share data without invading privacy and whether the insurance industry could successfully mimic Open Banking to form an "Open Insurance" ecosystem. These are not only challenges for the insurance industry but also an opportunity to contemplate the progress made with InsurTech.
This year's seminar invited expert panelists such as deputy director Chen Kung of the NCCU FTRC, consultant Weng Chung-He of the Life Insurance Association of the Republic of China, and Managing Senior Executive Vice President Chen Ming-Huan of Cathay Life Insurance. Under the topic of "Evaluation Study on the Strengthening of Security in Digital Exchange of Medical Records and Establishing Mechanisms for Public-Private Partnerships”, the panel focused on three vocal points: 1) “Applying for Digital Medical Records Using Smartphones (Blockchain)," 2) "The Future and Challenges of Insurance Claims Alliance Chain," and 3) "Current Status and Development of Data Exchange Platforms Between the Insurance Industry and Hospitals." Professor Chen Kung showcased the procedure for exchanging digital medical records using smartphones, stating that matchmaking through a smartphone app saves time for patients when they apply for insurance information by increasing the speed at which the applications are processed and eliminates the need for patients to visit different physical locations. However, private data remains a thorny subject for users, hospitals, and insurance companies. Consultant Weng from the Life Insurance Association of the Republic of China shared a case study of "Applying InsurTech to a Shared Platform" and provided insight on 3 major aspects, "unified applications", "shared documents," and "third-party documentation centers." According to the Financial Supervisory Commission's financial inclusion and observation index from 2020, the implementation of blockchain services in insurance, digital policy verification, and documentation mechanisms are urgent matters. InsurTech aims to establish shared platforms that can prevent duplicate policies, reduce the R&D costs for companies, and allow policyholders to enjoy the convenience of InsurTech. Managing Senior Executive Vice President Chen of Cathay Life Insurance shared the perspective of insurance companies. He states that current policy claims require patients to contact hospitals and insurance companies through the submission of physical documents. This causes pain points for all 3 parties. As for hospitals, this results in administrative procedures that cost time and labor as well as the risk of bad debts for self-paid items. Insurance companies face the risk of forged receipts, the cost of digital data conversion, and the service costs of sales representatives. Cathay Life Insurance is currently partnered with 29 hospitals to allow patients to immediately file claims with greater efficiency; this allows hospitals to avoid credit card processing fees, and insurance companies no longer have to shoulder the cost of digital data conversion. However, looking at it from the perspective of long-term development, insurance companies that interface with individual hospitals will also face the challenges of higher implementation costs due to data exchange specifications and interfaces that lack unification. The ideal structure will entail one-stop claims settlement, shared data among insurance companies, and a single submission for multiple claims to save on administrative costs.
With respect to the InsurTech application scenarios shared above, professors Wang and Peng both believe that applying technology to build a shared platform is inevitable. In the post-pandemic era, the insurance industry must work together to implement a virtual online application process for policyholders to reduce the risk of infection. This also addresses the need for sustainable development by interfacing shared platforms to promote paper-less operations, respond to environmental issues, and further improve the shared prosperity of the insurance ecosystem.

▲NCCU FinTech Research Center Deputy Director Chen shares his experiences

▲Consultant Weng Chung-He of the Life Insurance Association of the Republic of China shares his experiences

▲Managing Senior Executive Vice President Chen Ming-Huan of Cathay Life Insurance shares his experiences

▲Active participation at the event