SINGAPORE, May 31, 2018 /PRNewswire/ -- ERGO Insurance Pte. Ltd and PolicyPal Singapore Pte. Ltd. are teaming up to roll out a smart travel insurance product powered by PolicyPal Network's Blockchain Technology. The product will be flight delay insurance with automated claims payouts, made possible with PolicyPal Network's decentralised application, built on Blockchain.
Globalisation has led to a drastic increase in flights taken each year; however, the infrastructure for handling flight delay claims is still not up to par. This is why PolicyPal and ERGO are underway with an innovative flight delay insurance application.
Smart contracts will automatically trigger a claims pay-out into the bank account of the covered insured member as per the policy terms and conditions when their flight is delayed. Persons who have purchased flight delay insurance will then receive the appropriate compensation without the hassle of filing for a claim. With traditional travel insurance policies, the claims process can be far from frictionless, resulting in a large majority of individuals not filing for a claim at all. Not only does the flight delay insurance reduce the hassle of filing a claim, it removes the hassle altogether.
"We are excited to work with PolicyPal on flight delay insurance which is an innovative, customer-focused solution that offers our customers a more efficient management of flight delay claims under their travel insurance policies," said Karl-Heinz Jung, CEO of ERGO Insurance Pte. Ltd. "The move is part of our initiative to bring efficiencies and convenience to our customers via innovation."
ERGO will provide the travel insurance, which they have been doing for more than 100 years. PolicyPal Network's role will be to provide the technology -- the smart contract. There are three major benefits to using smart contract technology in order to provide flight delay insurance:
1. Increasing efficiency
Once a travel insurance policy has been purchased from ERGO, a smart contract will automatically be created, storing the necessary information. As information from air traffic databases is pre-programmed in the smart contract, claims payouts will be triggered upon the detection of a delay. The process of filing for a claim is completely removed, effectively increasing efficiency for both the customer and ERGO.
2. Strengthening the relationship between the insurer and the insured
Blockchain technology enables transparency of the entire claims filing process. As a result, the use of a smart contract removes potential disputes or disagreements which may arise between the insurer and the insured. This leads to increased levels of trust between the insured and the insurer.
3. Decreasing cases of fraud
Data stored on the Blockchain is permanent and any changes are directly traceable; therefore, cases of fraudulent activity will be decreased. Additionally, attempts at fraud will be more easily detectable. Fraud has a negative effect on both the insurer and the insured, as it leads to unnecessary time and money spent.
The partnership between ERGO and PolicyPal will commence right away with a close collaboration over product development, and thereafter be launched to the public by end June 2018.
About ERGO Singapore
ERGO Insurance Pte. Ltd. is a registered general insurer regulated by the Monetary Authority of Singapore. They are a wholly owned Singapore subsidiary of ERGO Group AG, one of the major insurance groups in Germany and Europe, and are a part of Munich Re, one of the leading reinsurers and risk carriers worldwide. They offer a comprehensive range of personal insurance products from private motor to health and travel; and commercial insurance coverage for property, health, work injury, engineering, marine, bonds and commercial motor. ERGO is represented in over 30 countries worldwide.
This press release contains forward-looking statements that are based on current assumptions and forecasts by the management of ERGO Insurance Pte. Ltd. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward looking statements or to conform them to future events or developments.
About PolicyPal Singapore
PolicyPal Singapore is a Singapore-registered insurance broker and exempted financial advisor regulated by the Monetary Authority of Singapore and was the first startup to graduate from the Monetary Authority of Singapore's financial technology sandbox and currently partners with 16 global insurance companies.
About PolicyPal Network
PolicyPal Network is a decentralised insurance protocol that uses data to bridge the gap between consumers and insurance providers by providing a new level of accessibility within the insurance ecosystem. The company also works with insurers to provide cryptoprotect insurance coverage for digital assets and smart contracts. PolicyPal Network is a member of Singapore Fintech Association and ACCESS.
The statements contained in this press release may include statements of future expectations, prospects and such other forward-looking statements. Such statements are based on the current expectations and certain assumptions of the management of PolicyPal Singapore and PolicyPal Network, of which many are beyond the control of PolicyPal Singapore and PolicyPal Network.
PolicyPal Singapore and PolicyPal Network do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements, save for any information required to be disclosed by law. As such, in no case whatsoever will PolicyPal Singapore and PolicyPal Network be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release.