Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementation
Traditional insurance contracts are beset with challenges such as cumbersome notification, complex underwriting and inefficient claims settlement, all of which impede the industry’s growth. In response, the digital transformation of insurance companies has become essential. Blockchain technology, wi...
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| Format: | Article |
| Language: | English |
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ELS Publishing (ELSP)
2024-05-01
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| Series: | Blockchain |
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| Online Access: | https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2024/blockchain20240003.pdf |
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| _version_ | 1849329438418796544 |
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| author | Jiaxin Ran Dechuan Li Qixin Zheng Jerome Yen Yingjie Xue |
| author_facet | Jiaxin Ran Dechuan Li Qixin Zheng Jerome Yen Yingjie Xue |
| author_sort | Jiaxin Ran |
| collection | DOAJ |
| description | Traditional insurance contracts are beset with challenges such as cumbersome notification, complex underwriting and inefficient claims settlement, all of which impede the industry’s growth. In response, the digital transformation of insurance companies has become essential. Blockchain technology, with its inherent features of transparency and immutability, offers significant potential for transforming the insurance industry and there has been considerable research on using blockchain technology in the insurance sector. However, when it comes to cross-border insurance service, current solutions fall short in effectively navigating the legal and compliance complexities inherent in cross-border insurance service delivery. When transmitting data across borders, it is essential to adhere to the legal requirements of cross-border laws and regulations, especially considering the variations in regional data protection and privacy legislation. A general solution for managing cross-border data transfer that both supports service delivery and adheres to compliance standards, has yet to be developed. In this paper, we propose solutions to secure data transfer in cross-border insurance service provision. First, we examine the legal and compliance challenges associated with cross-border data transfer. Following this, we introduce a system that integrates blockchain, smart contracts, and Trusted Execution Environment (TEE) to enhance cross-border insurance services. We propose a cross-chain protocol, which incorporates hash-locking and the notary mechanism for efficiency and security. We develop a prototype for implementing our proposed protocol and conduct extensive testing to show the practicality and security of our proposed protocol. |
| format | Article |
| id | doaj-art-d9ef00db44a94d7ca681e4ea8902115d |
| institution | Kabale University |
| issn | 2959-1260 2958-8138 |
| language | English |
| publishDate | 2024-05-01 |
| publisher | ELS Publishing (ELSP) |
| record_format | Article |
| series | Blockchain |
| spelling | doaj-art-d9ef00db44a94d7ca681e4ea8902115d2025-08-20T03:47:16ZengELS Publishing (ELSP)Blockchain2959-12602958-81382024-05-012110.55092/blockchain202400031762475646867136512Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementationJiaxin Ran0Dechuan Li1Qixin Zheng2Jerome Yen3Yingjie Xue4Faculty of Science and Technology, University of Macau, Macao, ChinaFaculty of Science and Technology, University of Macau, Macao, ChinaFaculty of Law, University of Macau, Macao, ChinaFaculty of Science and Technology, University of Macau, Macao, ChinaThrust of Financial Technology, Society Hub, The Hong Kong University of Science and Technology (Guangzhou), Guangzhou, ChinaTraditional insurance contracts are beset with challenges such as cumbersome notification, complex underwriting and inefficient claims settlement, all of which impede the industry’s growth. In response, the digital transformation of insurance companies has become essential. Blockchain technology, with its inherent features of transparency and immutability, offers significant potential for transforming the insurance industry and there has been considerable research on using blockchain technology in the insurance sector. However, when it comes to cross-border insurance service, current solutions fall short in effectively navigating the legal and compliance complexities inherent in cross-border insurance service delivery. When transmitting data across borders, it is essential to adhere to the legal requirements of cross-border laws and regulations, especially considering the variations in regional data protection and privacy legislation. A general solution for managing cross-border data transfer that both supports service delivery and adheres to compliance standards, has yet to be developed. In this paper, we propose solutions to secure data transfer in cross-border insurance service provision. First, we examine the legal and compliance challenges associated with cross-border data transfer. Following this, we introduce a system that integrates blockchain, smart contracts, and Trusted Execution Environment (TEE) to enhance cross-border insurance services. We propose a cross-chain protocol, which incorporates hash-locking and the notary mechanism for efficiency and security. We develop a prototype for implementing our proposed protocol and conduct extensive testing to show the practicality and security of our proposed protocol.https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2024/blockchain20240003.pdfcross-border insuranceblockchaincross-chainteedata security |
| spellingShingle | Jiaxin Ran Dechuan Li Qixin Zheng Jerome Yen Yingjie Xue Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementation Blockchain cross-border insurance blockchain cross-chain tee data security |
| title | Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementation |
| title_full | Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementation |
| title_fullStr | Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementation |
| title_full_unstemmed | Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementation |
| title_short | Blockchain-enabled cross-border insurance: from legal issues, solution design, to implementation |
| title_sort | blockchain enabled cross border insurance from legal issues solution design to implementation |
| topic | cross-border insurance blockchain cross-chain tee data security |
| url | https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2024/blockchain20240003.pdf |
| work_keys_str_mv | AT jiaxinran blockchainenabledcrossborderinsurancefromlegalissuessolutiondesigntoimplementation AT dechuanli blockchainenabledcrossborderinsurancefromlegalissuessolutiondesigntoimplementation AT qixinzheng blockchainenabledcrossborderinsurancefromlegalissuessolutiondesigntoimplementation AT jeromeyen blockchainenabledcrossborderinsurancefromlegalissuessolutiondesigntoimplementation AT yingjiexue blockchainenabledcrossborderinsurancefromlegalissuessolutiondesigntoimplementation |