The Self-Sovereign Identity will revolutionize the insurance sector.
Self-Sovereign Identity (SSI), also known as decentralized identity or Self-Sovereign Identity, allows users (clients, patients, etc.) to manage their identity data and thus strengthen compliance with legal obligations and reduce costs.
The eIDAS regulation establishes the framework to enable and recognize the European Digital Identity. The new eIDAS2 rule is being prepared to solve a series of problems and limitations of eIDAS, based on the concepts of Self-Sovereign Identity or SSI. This new regulation aims to improve interoperability between the different electronic identity systems, identity verification, and trust in third-party electronic identity services. On the other hand, it is expected that, by 2030, 80% of the population will already have a European identification system (the so-called “e-ID”).
Why the insurance sector needs a renewed approach to identity
For regulatory reasons, financial service providers will soon be required to implement identity verification services based on SSI technology and governed by the eIDAS2 regulation. Obtaining verifiable information from the client will significantly reduce the cost of carefully reviewing documents and ensuring that a person is in a car accident.
On the other hand, having this instantly and automatically verifiable credential means that subsequent KYC electronic verifications, for example, for a different division of the insurer, will be able to leverage this credential and avoid duplicate manual verifications.
Because of automated processes, using SSI (Self-Sovereign Identity) and VC (Verifiable Credentials) in this sector means less money spent verifying customer information, faster KYC, and ultimately lower compliance costs as it reuses existing processes such as KYC credentials or other onboarding processes (bank credentials or official ID credentials).
VIDchain and VIDwallet, the user-centric information exchange system based on SSI that empowers the insurance sector
As pioneers and defenders of the SSI paradigm, we are working to revolutionize the current verification and onboarding process of new clients in the insurance sector and improve the client’s experience with VIDchain and VIDwallet.
VIDchain proposes a trusted and user-centric information exchange system that applies concepts of decentralized identity, verifiable credentials, and Digital Attestations of Attributes, emphasizing data portability and interoperability to give customers more control over their personal information.
VIDwallet is an identity wallet created by Validated ID to implement the digital counterpart of a physical wallet. It facilitates storing and protecting personal data (driving license, passport, contracts, medical certificates, etc.) on the user's smartphone.
VIDwallet is multi-ledger technology that is not based on a specific DLT (Distributed Ledger Technologies) or blockchain network but can also operate without any DLT involved. VIDwallet already supports various DLT (Distributed Ledger Technologies) and blockchain networks, such as EBSI (European Blockchain Services Infrastructure), Ethereum, and Velocity, with and without a distributed network using the DID (Decentralized Identifier) critical method. Furthermore, it supports EBSI identifiers and is fully EBSI compliant with its services.
Validated ID and its commitment to interoperability
At Validated ID, we work to introduce decentralized digital identity services fully aligned with the regulatory frameworks of the European Union.
VIDchain is the first solution to comply with EBSI regulations as part of the EBSI Early Adopters program. In 2022, we designed a pilot solution on decentralized identity for CaixaBank and Aigües de Barcelona to test the interoperability between digital identity networks built on blockchain and thus optimize the direct debit of receipts in Aigües de Barcelona and improve the risk score of a potential new client at CaixaBank.
That same year, we were selected as the Santander X Global Challenge | Blockchain and Beyond winner in the scaleup category by VIDchain. A challenge aimed at startups and scaleups with solutions that support SMEs in their digital transition.
You can learn more about VIDchain at https://www.validatedid.com/vidchain.