Telcos launch blockchain service for insurance partner
07 July 2020 | Melanie Mingas
Three major telcos in South Korea have collaborated with an insurance firm to launch the blockchain-based Mobile Notification Service (MNS) for insurance customers.
KT Corp. (NYSE: KT), South Korea's largest telecommunications company, co-developed MNS with KB Insurance, launching for customers this month.
In addition, KB Insurance customers who have subscriptions with SK Telecom and mobile carrier LG U+, will also be able to access the service.
The solution combines blockchain and mobile notifications to deliver updates on non-life insurance products to customers via their phone. The use of blockchain grants mobile notifications the same legal standing as registered mail, providing the insurer proof of receipt.
“We expect to see a dramatic improvement in the quality of our customer notification service through the introduction of Mobile Notification Service in partnership with KT,” said Seo Wan-Woo, SVP of IT insurance at KB Insurance.
Using information held by KT Corp, KB Insurance will match customer information to their mobile subscription information and assign personal identification information. From this month, policyholders who opt-in will be able to receive insurance notifications on their mobile phones without an additional app, and regardless of whether their other contact details, such as postal address or mobile number, change.
By using a digital channel, MNS is intended to reduce mailing costs and non-delivery of notifications, and improve the customer experience.
The information sent using MNS will be logged by the blockchain certification system of the Korea Internet and Security Agency (KISA), which this year channelled US$9 million into blockchain-based projects in the country.
In May, the Bill and Melinda Gates Foundation agreed to fund KT Corp’s work into pandemic response solutions based on AI and Big Data.
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