Chinese largest insurer, Ping An has recently issued Digital Yuan (Digital RMB) in Shenzhen for its new insurance policies. The objective pushes to expand Central Bank Digital Currency (CBDC) in the financial sector.
Ping An local subsidiary, in the eastern city of Shenzhen, built a coronavirus insurance plan where users who pay the premium in RMB can be rewarded with special discounts. The insurance plan is designed for the medical staff in Shenzhen’s Nanshan District.
The insurance plan covers over RMB 300,000 ($46,342) in case of deaths related to the coronavirus, RMB 50,000 ($7,723) for diagnosing coronavirus, and RMB 50,000 ($ 7,723) in case of accidental death.
Expanding use cases
Digital RMB has been previously tested in the insurance sector. However, this is the first time such insurance policies have been opened to the public.
In December 2020, Chinese local media reported that test runners were able to buy insurance via Digital RMB from a Chinese insurance start-up app ‘Zhong An’.
Digital RMB has been tried and tested in various use cases in the retail sector. Examples include merchant payments, payroll payments, and metro payouts.
The latest figures estimated that over 70.8 million transactions, adding up to 34.5 billion yuan ($5 billion), have been made using the Digital Yuan, according to the People’s Bank of China.