The first UAE blockchain digital platform to enable insurers to synchronize motor recovery claims and improve their financial position has been launched in Abu Dhabi.
Leading UAE insurance companies including Yas Takaful, Emirates Insurance Company, Abu Dhabi National Insurance Company, and Oriental Insurance Company were among the first to adopt the digital solution in the UAE.
XA Group announced on Tuesday the launch of Addenda, the first 'Made in UAE' blockchain-based, end-to-end digital solution. XA Group, a UAE-based global provider of automotive aftermarket services operating in the Middle East, India, and Europe, has launched Addenda's Arabic version to support primarily Arabic-speaking local insurers. Version is also included.
At a launch event held in Abu Dhabi under the patronage and presence of Abu Dhabi National Insurance Company, Emirates Insurance Company, Yas Takaful, and Oriental Insurance Company, XA Group announced that for the first time, all major motor insurance companies are being granted access to Addenda.
Addenda, a blockchain technology startup, and DIFC FinTech Hive member leverages XA Group's advanced automotive repair and insurance solutions to facilitate, centralize, and manage all communications between insurance companies in the motor claims recovery process.
XA Group's goal is to further develop and improve Addenda by integrating existing products into the platform and enabling seamless communications. The addenda aims to manage all the key touch points in the motor claims eco-system that brings together insurers, brokers, repairers, and consumers.
The Addenda offers a real-time, shared view of policy data and documentation between insurers, providing visibility into the extensive approval and reconciliation process that takes place between motor recovery claims.
“We understand the challenges and huge financial burden faced by insurance companies due to the heavily decentralized and paper-based nature of the reconciliation process. Decentralization often leaves insurance companies unable to fully identify the reasons behind outstanding claims and therefore unable to reconcile their financials with other insurers. Seeing some of the leading insurers in the UAE on board is a testament to the sector's desire for transparency and digitalization", XA Group officials said.
Addenda is a communication platform that allows the centralization of communication and documentation between all insurance companies on motor claim recoveries.
When an insurance company needs to recover funds from another company during a third-party claim, it allows all communications to be done digitally. Insurance companies use couriers, emails, and phones to send paperwork and communications. There is no practical method for organizing it. As a result, we face a huge challenge in the market in terms of being able to recover funds.
In short, using the Addenda platform makes it possible to exchange value without using paper in a smooth, effective, and economical manner. The platform provides transparency between insurers which allows communications to be done digitally.