9 Apr, 2021

Insurance Giant Allianz Working On its Own Crypto Token: Report

It seems that big corporations have suddenly entered in a race to launch their own crypto tokens. First of all it was JPMorgan which announced its JPM Coin. Then Facebook announced its plans about Libra. Then we heard about a patent that Walmart has obtained to develop its own token. And now similar news is coming from Germany, where insurance giant Allianz Global Corporate and Specialty SE (AGCS) has revealed that it’s in advanced stage of accepting crypto payments with its own token.

That’s right. According to the latest report published by Forbes magazine, AGCS is developing a new token-based ecosystem utilizing blockchain technology for payments of premium. A spokesperson for Allianz told Forbes in a mailed statement:

“AGCS is further exploring blockchain technology to simplify and accelerate cross-border insurance payments for its corporate customers. A project team is in the advanced stages of development for a token-based electronic payment system to allow for frictionless, transparent and instantaneous money transfers for a range of different types [of] payments.”

Like many of the other tokens announced by other corporations, the token that Allianz is developing will work on a proprietary blockchain. The blockchain has been developed by Adjoint, and Allianz plans to use it for addressing the issues existing in global money transfer system for its various affiliates. The Allianz spokesperson told Forbes that there are a plethora of global transactions everyday in its business ecosystem that can be improved with a proprietary crypto token. The company is currently in advanced experimentation stage to launch this token, and here’s what it told Forbes about the progress:

“The basic core infrastructure has been built and tested, and the next step will be to trial money transfers with a limited scope and for a short period of time to conclude testing and prove hypothesis.”

It’s also worth noting that this is not the first time when Allianz is experimenting with blockchain technology. In our own country Bajaj Allianz General Insurance, a joint venture between Bajaj Finance and Allianz SE, has been using blockchain for providing flight delay insurance since 2017. The solution developed for the purpose is named Travel Ezee, and it’s a blockchain based solution that allows people to claim a particular amount of insurance in all those cases in which they need to stay in any particular city for a longer duration due to delay of flight. Reimbursement in such instances can be a lengthy and cumbersome process, but Bajaj Allianz has been able to improve it significantly with help of Blockchain. Here’s how it works, in the words of same Allianz spokesperson:

“The entire travel insurance policy is put on a smart contract and in the event of a flight delay, the claims process is automatically initiated and fulfilled. The claim amount is then automatically transferred to the customer’s bank account within a few minutes. This concept is unique since it is not the customer who initiates the claims process, rather it is the insurance company that keeps track of claim events and initiates the payout.”

So Allianz is also looking all set to join the crypto game with its own token. Let’s see how long it takes to happen!