MIDAS is a collaborative effort between the Hong Kong Federation of Insurers (HKFI) and CryptoBLK that harnesses Distributed Ledger Technology (DLT) or blockchain to ensure the authentication of motor insurance documents and fight against fraudulent cases. In 2020, MIDAS won the Gold Award from Hong Kong ICT Award; and in 2019, it was awarded the Innovation of the Year from Asia Insurance Review in Singapore.

CryptoBLK is thrilled to launch the “Innovate Together” Talk, where we will have an in-depth conversation with industry leaders, who will update us on the challenges and opportunities the industry is facing, and how MIDAS can bring “trust” to the whole industry through the blockchain, and hence solving the industry pain points.

We are honored to have Mr. S.K., Director and Chief Executive Officer of Sompo Insurance Company (Hong Kong), as our guest in the “Innovate Together” Talk. He will share his views on the digital transformation in Hong Kong’s insurance and the application of blockchain technology,  as well as the value and benefits of MIDAS to law enforcement and public interests.

Q: How do you think about the digital transformation in Hong Kong’s insurance industry

S.K.: Actually, many insurance companies (both life and non-life) were already pursuing a digital transformation roadmap few years ago. However, the pandemic crisis has further accelerated the trend toward automation and digitalization. It is expected that more companies are going to leverage technology to reduce costs, improve data analysis, streamline claims and underwriting procedures, bolster customer service and drive efficiency. Also, remote technologies help companies moving toward virtual operations in the “new normal”.

Q: HKFI is making effort on digitizing the industry, such as investing blockchain technology to develop industry-wide platform MIDAS. What is your view on it?

S.K.: MIDAS is the first industry-wide platform using blockchain technology to address the perennial problem of fake cover note / policy document. It is a successful public-private partnership initiative which is fully supported by the Insurance Authority, insurance companies, intermediaries and car owners. We are looking forward to having more industry-wide platform initiating / leading by HKFI to support the industry’s digital transformation.

Q: Innovation for wellbeing is Sompo’s brand slogan. Since when does Sompo start the digital transformation journey?

S.K.: Sompo Hong Kong has started the digital transformation journey since 2016 ranging from front-end transformations such as products and customer experiences to back-end transformation such as cloud and IT infrastructure. For example, we have improved our customer experience to take advantage of digital technologies and include features such as e-Claims or online sales. We have built a strong IT infrastructure in order to provide a central digital nervous system for our company.

Q: Sompo is the first few insurance companies adopting MIDAS. When considering implementing a new system, such as MIDAS, into your existing system, how do you evaluate the value of a new system? Does MIDAS bring the value that you are looking for?

S.K.: As businesses get more complex, manual processes and systems become increasingly error-prone and risky. Bringing the new system into the company can help automate, streamline, and refine the operating process, as a result of releasing our staff to do meaningful, high-value work. MIDAS platform can create competitive advantages for our company. QR codes generated by the MIDAS platform provide easy access for car owners and the Transport Department to authenticate insurance documents instantly.

Q: Do you think the integration of MIDAS to your system will benefit to your customer? What does your customer say about your new system after using MIDAS?

S.K.: Sure. Using MIDAS can help us to authenticate motor insurance cover notes/policies by generating specific QR codes. The portal can display the latest status of the cover note/policy and the coverage period corresponding to the QR code. By using the service, car owners can use the QR code to have their insurance cover notes and policies authenticated at the Transport Department’s offices.

Q: Any challenges in the API process?

S.K.: Our team has faced challenges when testing API implementations. API testing is part of the integrations testing process and concerns the communication between our core system and MIDAS. Our team put more efforts on validating parameters and system integration by making sure all parameter data uses the correct string or numerical data type as well as API performance.

Mr. S.K. Li

Director and Chief Executive Officer

Sompo Insurance Company (Hong Kong) Limited

Mr. S.K. Li is the Director and Chief Executive Officer of Sompo Insurance Company (HK) Ltd. – a member of SOMPO Holdings, one of the largest globally competitive insurance groups listed in Tokyo Stock Exchange of Japan.

He has 30 years of experience in insurance industry in PRC and Hong Kong. He is elected as the General Insurance Councillor and ExCom Member of Insurance Fraud Prevention Claims Database of Hong Kong Federation of Insurers.