The Edge, Singapore: Cognizant’s SVP and Global Leader, Insurance Industry Markets, Says Blockchain is the Future of the Insurance Industry

“Vitana is a prime example of the way we are transforming the Insurance industry through digital,” said Ben Bengston. “Through the use of blockchain technology, we are able to essentially eliminate the claims process for certain insurance products. This saves time and money for both the insurance company and the patient—it’s a win for everyone involved and it will streamline the way insurance companies do business.” Excerpts:

“US-based insurer MetLife today launched an experimental blockchain insurance product in Singapore that eliminates the claims process. Dubbed Vitana, the product insures expectant mothers against diabetes developed during pregnancy, for a one-time payout of up to $2,500.

If an expectant mother is diagnosed with gestational diabetes by a panel doctor, an automatic payout of $500 is deposited in her bank account, without the need for a claim. An additional $2,000 payout is triggered in the event of an emergency caesarean section, premature birth or still birth. The payouts are automated via blockchain.

Vitana is jointly built by LumenLab, the Singapore-based innovation centre of MetLife Asia, along with reinsurer Swiss Re, IT specialist Cognizant and e-medical records provider Vault Dragon. It was developed under the Monetary Authority of Singapore’s regulatory sandbox. MetLife is otherwise not licensed to provide insurance here.

Vitana is an example of parametric insurance, in which a payout is automatically generated upon a trigger event, such as a natural disaster. It is commonly used in industries such as agriculture. This is unlike traditional insurance, for which customers have to apply for a claim after the relevant event.”

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