The Hong Kong Federation of Insurers (HKFI) today (17 December 2018) announces the launch of the Motor Insurance DLT-based Authentication System (MIDAS), a blockchain application to help authenticate motor insurance cover notes / policies. The technology involved is provided by CryptoBLK, a Hong Kong startup at Science Park specializing in the development, deployment and operation of Blockchain systems.

“MIDAS is the first ever industry-wide application of blockchain technology in the space of motor insurance in Asia,” said Mr Philip Kwan, Chairman of HKFI’s Accident Insurance Association. “This is a classic case of Public-Private Partnership initiative to address the perennial problem of fake cover notes in our insurance market”, added Mr Kwan.

Dr Duncan Wong, CEO and Co-founder, CryptoBLK, said, “We’re excited to see the official launch of our Hong Kong’s motor insurance authentication platform. MIDAS is an excellent example demonstrating how DLT can act as a catalyst to help accelerate an industry-wide digital transformation.”

“This represents another key milestone in the journey of transforming Hong Kong into a smart city”, added Dr Wong.

Initiated by HKFI in April 2017, this project deployed the cutting-edge Distributed Ledger Technology, conducted two User Acceptance Tests and had its system and data security duly verified by an international consultant firm. This is a digital platform of trust built jointly by the Hong Kong insurance industry and a local fintech startup for the benefit of society with the support of the Hong Kong SAR Government.

Car owners can now use specific QR codes generated by MIDAS and have their motor insurance cover notes / policies authenticated at all of four Licensing Offices of the Transport Department.

The system is easy to use and does not store any Personal Identifiable Information. Each single record created is immutable and traceable and data security is ensured with the aid of the best available and proven cyber security technology.

The Transport Department welcomes the industry’s initiative in deploying blockchain technology to help eliminate the malpractice of fake motor cover note to protect public interest.

The Hong Kong Federation of Insurers is thankful to all participating insurers and business partners for their support. We would also like to express our grateful appreciation to the Insurance Authority, the Transport Department, the Transport and Housing Bureau, the Hong Kong Police Force and the Financial Services and the Treasury Bureau for their support and wise counsel each step of the way.

For the Q&A, please click here.