Ping An Property Insurance’s Shenzhen branch has launched China’s first digital yuan insurance policies, in cooperation of the city’s Bank of China branch.
According to a report by Global Times, the move is a major step in the broadening deployment of China’s digital currency. It is also a simulation exercise exploring the various uses of the digital yuan. Previous trials were in the e-commerce and online payments sectors, and insurance gives it a wider reach across the general public.
“As more users get used to making payments with the digital yuan and the market matures, the application scenarios will be able to expand from the insurance industry to more scenarios such as financial services, life services, and even the purchase of funds and trading in securities,” Renmin University of China assistant professor Wang Peng told Global Times.
The new insurance policy covers medical workers in Shenzhen’s Nanshan district, with coverage of RMB300,000 (SG$63,000) for death from COVID-19. It also provides a payout of RMB50,000 if the medical worker is diagnosed with COVID-19, and RMB50,000 in case of accidental death.
A representative of Ping An said that the company seeks to further explore the application of the digital yuan in claims, payments, and other aspects of the insurance process, as well as help expand the use of the digital yuan into various other uses.