The Hong Kong Federation of Insurers (HKFI), a financial industry self-regulator, is developing a blockchain powered platform for the city's motor insurance.
During a speech at the HKFI's Annual Reception event, James Lau, the Secretary for Hong Kong's Financial Services and the Treasury Bureau, doubled down on his belief that blockchain technology will play a crucial role in advancing the insurance industry in Hong Kong.
While endorsing the benefit of adopting distributed ledger technology for the financial sector, Lau also noted that the city's insurance industry is making technological progress in this direction.
"The use of blockchain technology can raise business efficiency and allow insurers to enjoy easy and secure access to timely and accurate data. In this regard, I am glad to note that HKFI is developing a blockchain e-platform for motor insurance. I encourage the insurance industry to continue to devote more resources to embrace Insurtech."
Formed in 1988, the HKFI is a self-regulatory organization that aims to ensure professional conduct of the insurance industry and to combat claim fraud.
While the government official has yet to disclose details on the insurance scheme, his comments give an insight into an ongoing push among the city's government bodies and financial sectors into blockchain development.
As reported by CoinDesk, it follows a previous remark by the Secretary, in which he bolstered the potential benefit of blockchain technology in implementing China's "Belt and Road" initiative.
Hong Kong image via CoinDesk's archive