South Korea's insurance institute, central bank to develop digital currency insurance

The Korea Insurance Development Institute and the Bank of Korea have agreed to form a joint task force to develop digital currency-based index insurance, Edaily reported. The move is a follow-up to a phase two memorandum of understanding for Project Hangang, which focuses on utilizing digital currency and deposit tokens. Digital currency-based index insurance is a product that automatically and immediately pays claims in digital currency when an objective index meets a preset value, such as during an extreme weather event or disaster, bypassing the need for a separate damage assessment process. The task force will concentrate on the research and development of a proof-of-concept model that combines the technical advantages of digital currency with the efficiency of index-based insurance.