Aon, one of the world’s largest insurance companies, has teamed up with respected charity Oxfam and blockchain start-up Etherisc to deliver blockchain crop insurance policies to small farmers in Sri Lanka.
“Farmers in Sri Lanka represent a third of the workforce and account for almost 20 percent of the economy. Yet, very few have insurance,” said Michiel Berende of Etherisc.
The group’s revolutionary system recognizes the lack of sophistication with insurance in emerging markets. Farmers don’t have to submit claims, and insurers don’t need to train adjusters to administer the policies.
Instead blockchain smart contracts automate the process. Robotic weather stations record the amount of rain falling on farms. In the event of extreme levels, claims will be triggered automatically.
With traditional policies, an agent from the insurance company would need to travel to the area affected by the floods or droughts. Automation not only reduces the cost, but the time taken to authorize claims. Source...