PARAMETA, a Web3 enabler formerly known as ICONLOOP, and Shinhan EZ Insurance have completed a joint proof of concept that applies blockchain and smart contracts across the insurance lifecycle. The project tested deposit token payments for premiums and claims while also covering product creation, collection, assessment, exception handling, and settlement. It focused on verifying a structure in which decision evidence and processing history remain auditable.
Project Scope and Objectives
The proof of concept targeted parametric insurance, a type of coverage that pays out according to predefined external indicators and conditions. Shinhan EZ Insurance and PARAMETA implemented the full processing flow in a test environment, from product registration through premium collection, data assessment, payment condition evaluation, claims payment, exception review, and settlement. The two companies examined how each stage connects within a blockchain based workflow.
Blockchain Based Implementation
PARAMETA used its digital asset financial infrastructure, Parasta, to implement the entire insurance process with blockchain and smart contracts. The system supports both deposit tokens and conventional payment methods for premium collection while preserving a traceable record of assessment data and processing history. The collaboration also explored automatic processing and exception review to confirm broader applicability across insurance operations.
Verification of Payments and Decision Evidence
The initiative went beyond using deposit tokens as a simple payment method. It demonstrated how external indicators, such as weather data for parametric products, can determine insurance conditions and trigger payment and settlement on chain. This allows insurers to review the basis for automated decisions and maintain a clear history of relevant data and actions.
Executive Comments
Shinhan EZ Insurance CEO Kang Byung-kwan stated that parametric insurance is well suited to testing digital transformation because it relies on objective external indicators and clear payment conditions. He added that the proof of concept confirmed a connected structure spanning premium payment, claims payment, product creation, assessment, exception handling, and settlement. The insurer plans to phase in these capabilities as related regulations and business conditions evolve.
PARAMETA CEO Kim Jong-hyup noted that the project is meaningful because it did not limit deposit tokens to payments. It implemented the full sequence of condition assessment, payment, and settlement based on external data. He said PARAMETA will continue working with Shinhan EZ Insurance to refine the scope of blockchain applications in insurance through its institutional digital asset infrastructure.
Implications for Digital Asset Adoption
The demonstration is part of a wider effort by financial institutions to evaluate deposit tokens for operational use beyond simple settlement. It shows how blockchain based records can improve transparency in parametric products where objective external data drives decisions. The approach may also inform future initiatives that connect digital asset infrastructure with traditional insurance systems.
Company Background
PARAMETA is a blockchain technology company based in South Korea with full stack capabilities spanning core engines, wallets, issuance, identity, and trading. It offers institutional platforms including Parasta for digital asset finance, MyID for blockchain identity authentication, and PortX for digital asset trading. The company supports financial institutions and enterprises in stablecoin, deposit token, and real world asset tokenization initiatives.
This joint proof of concept provides an early reference for how deposit tokens and smart contracts can support a more transparent and automated insurance process. By connecting product creation, payment, assessment, exception handling, and settlement, the test highlights the potential to reduce manual intervention while improving auditability. PARAMETA and Shinhan EZ Insurance intend to build on the results as regulatory frameworks and market infrastructure mature.