Oxfam, Etherisc and Aon team up to launch blockchain-based agricultural insurance policies. With farmers risking to lose their crops due to bad weather conditions, the deveolped system initiated payments for those affected. The system still has room for improvement which the companies plan to take care of.
“We are proud to have real-world, on-the-ground success from a blockchain solution for microinsurance,” Michiel Berende, the Chief Inclusive Officer at Etherisc, said. “We are delighted with the first phase results and we are excited to drive on and help more farmers” according to a source from PRNewsWire.
The effort is pulled by three companies in different industries. Oxfam; an organization working to reduce poverty, Etherisc; a FinTech in the insurance industry and Aon; leading services firm offering healthcare solutions.
Farmers struggled to acquire insurance policies due to high costs, a lack of understanding and when claims can be paid. Blockchain addresses those issues by automating actions. Claims will be paid automatically and administration costs will drop significantly.
Even though many of the issues with traditional insurance policies were fixed, others arose: lack of electronic devices and internet access, absence of a network and the farmers’