Metropolitan Life Insurance Company (MetLife) will be implementing the Ethereum blockchain for its life insurance offerings, according to a report by Forbes. The insurance firm is working with Singapore Press Holdings (SPH) and NTUC Income to develop ‘Lifechain.’
MetLife Asia CIO and LumenLab CEO Zia Zaman say that blockchain technology is a valuable innovation because it provides security, an opportunity for experimentation and multiparty participation.
According to Forbes, the insurer recognized the need for a more transparent coverage provision. This is because a number of families of insured individuals fail to claim life benefits for a variety of reasons.
In response to this issue, the company developed Vitana, a mobile application that utilizes smart contracts for automated pay claims. As of this writing, Vitana can be used for payouts to expecting mothers with gestational diabetes.
The role of Lifechain
The company’s Lifechain utilizes the services of all three companies namely MetLife, SPH and NTUC. Families of deceased individuals who chose to post obituaries in SPH’s “The Straits Times” will be offered participation in this project. The service will then enter the departed person’s National Registration Identity Card number into the blockchain.
NTUC automatically searches for a corresponding life coverage under the name of the deceased. If the system finds a policy for the beneficiaries, the service will notify the family and NUTC will start claims for the benefits.
MetLife is part of Forbes’ Blockchain 50, a list of companies delving into blockchain through a variety of avenues. The insurer used LumenLab, its own incubator, to create the insurance app using Ethereum’s technology.
When asked about whether it has plans to use cryptocurrency for redeeming claims, Zaman told Forbes that MetLife has no plans for cryptocurrencies as of the moment. However, he clarified that it may be a viable step in the future.