Life insurance process to be revolutionized by Metlife using Ethereum

Metlife, an insurance company, based in New York, is planning to incorporate Ethereum’s blockchain in its system to renovate the life insurance claims process. MetLife’s Singapore-based incubator, LumenLab, is collaborating with Singapore Press Holdings, a media group, and insurance cooperative, NTUC Income, to launch a smart contract platform called Lifechain built on Ethereum. 

The insurance firm has already used blockchain technology and public ledger for a mobile app called Vitana, supported by Ethereum. It was used to pay out claims to expectant mothers who acquired gestational diabetes. Reportedly, Lifechain will use the core smart contract platform, which is very closely related to what was built for Vitana. 

Zia Zaman, CIO of MetLife Asia and CEO of LumenLab, said:

“The future of distributed ledger technology in life insurance will somewhat depend on public sector involvement. Those jurisdictions and governments that are more innovative will see citizens and policyholders in their jurisdictions benefit from less friction, more fulfilled payments, and a general overall improved experience.”

Sometimes, the families of the deceased are unaware if the deceased had insurance. This innovation could also reduce prices and establish new services around tokenization. When a person passes away, Lifechain will programmatically determine if a person was protected by a policy and will automatically file a claim, ruling out other steps involved in the process. 

A death certificate will be provided by a government database after which the system acquire the deceased person’s National Registration Identity Card. Once the match is found, Singapore Press Holdings will inform family members and release an obituary, while the NTUC Income begins the life insurance claim process.