THEKEY Made Breakthrough in Blockchain Application for Social Security and Commercial Insurance Integration

4 min readNov 13, 2020

Back in 2014, the General Office of the State Council issued a document entitled “Opinions on Accelerating the Development of Commercial Health Insurance”, proposing to accelerate the development of commercial health insurance, encourage the government and medical institutions to cooperate with commercial insurance institutions, simplify the procedures for commercial insurance claims, and provide patients with fast settlement services. And at an executive meeting held by the State Council in July 2015, Premier Li Keqiang pointed out that the combination of social security and commercial insurance is a major innovation in the continuous deepening of medical reform.

THEKEY actively responded to the call of the country, and successively established key laboratories and topics such as the “Joint Innovation Laboratory for Kaifeng Social Insurance and Commercial Insurance “and “the Application of Blockchain in Social Insurance” with the Ministry of Human Resources and Social Security of the People’s Republic of China and China Association of Social Security. And in 2019, together with China Life Reinsurance Co., Ltd. (( China Pacific Life Insurance Co., Ltd. (, the insurance product “Tai’an Kang Malignant Tumor Medical Insurance” was rolled out officially ( This year, with the support of local social security departments, THEKEY used big data and blockchain technology to achieve significant progress in direct and fast claim settlementthe application scenarios of commercial insurance direct and fast claims, setting up a milestone in the joint innovation of social insurance and commercial insurance.

Four main sections are included in the commercial insurance direct and fast claim system — the insured, the automatic inquiry of insurance company, the automatic response of institutional data processing and the automatic claim settlement device of the insurance company. And the major functions are as follows:

a. The device of “the Insured” is for the insured to purchase insurance product and submit an inquiry or claim application.

b. The device of “Automatic Inquiry of Insurance Companies” is mainly to monitor the data that the insured in the blockchain who sends out claims and waits for the insurance company to process, and to automatically sends data requests to the institution.

c. The device of “Automatic Response of Institutional Data Processing” is to monitor the data requests for the institution to process in the blockchain, and automatically performs data operations. A consensus ledger will be formed on the blockchain during the data operation process.

d. The device of “Automatic Claim Settlement for Insurance Company” is for insurance company to uses the acquired data to automatically settle claims on the application, and the results will be uploaded to the blockchain after consensus is achieved in the blockchain system.

Structure of Commercial Insurance Direct and Fast Claim System

The above system has successfully solved several existing problems confronting commercial insurance:

a. Information barriers between government agencies and commercial insurance companies

The key to social security and commercial securityinsurance innovation is to break through information barriers. The system uses key technologies such as blockchain, capability opening platform, MPC (Secure Multi-party Computation), etc., to build a secure communication bridge between the data of government agenciesy and insurance companies.

b. Low efficiency of claim process

At present, commercial health insurance still practice old-fashioned post-event reimbursement regarding claim settlement, which is unbearably complicated, time-consuming, and inefficient. With the newly built system, the whole process can be handled automatically, which will bring much convenience to the insured.

c. Rights, responsibilities and benefits of data application

In the past, there are unavoidable risks of tampering with the original documents or frauds in the process of claim settlement. However, the system introduced its non-repudiation and non-tampering features in the business process, avoiding any human intervention factors and ensuring the fairness and transparency of the claim settlement results.

Social security and commercial insurance cooperation is of far-reaching significance. It not only greatly improves the efficiency of data use, but also facilitates the exploration of information and the formation of market prices.

THEKEY makes full use of blockchain technology to develop related applications in the field of social security and commercial insurance, and has made beneficial innovations in data privacy protection, business management efficiency improvement, and openness and transparency of the industry. The combination of social insurance and commercial insurance fully expanded the space for commercial insurance to participate in social management and served for people’s livelihood, so that commercial insurance truly becomes an indispensable part of the social governance system. And it also helps the government to dramatically reduce administrative costs and transform and upgrade the local economy, resulting in a multilateral win-win situation.


THEKEY is a decentralized ecosystem of Identity Verification (IDV) tool integrating national big-data and the blockchain. THEKEY’s proprietary Blockchain-based Dynamic Multi-dimension Identification (BDMI) platform has been using Personal Identity Information (PII) exclusively authorized by the Chinese Government. THEKEY token (TKY) is the only method to settle smart contracts across THEKEY Ecosystem, which is tradable on HitBTC, KuCoin, etc.

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THEKEY is a blockchain based identity verification technology (IDV) being developed to create secure digital identities for the future.