Oxfam in Sri Lanka, the organization working to alleviate poverty, revolutionary Blockchain project Etherisc, an InsurTech startup developing a protocol for decentralized insurance applications and Aon plc, the leading global professional services firm providing a broad range of risk, retirement, and health solutions, have succeeded in the delivery of the first season of their blockchain-based delivery of microinsurance to smallholder paddy field farmers in Sri Lanka.
“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.”
Historically, there were major barriers preventing farmers from utilizing insurance, including the lack of affordable and reliable insurance products, a lack of understanding about how insurance would help a farmer survive, and when and how a claim would be paid. This new blockchain technology directly addresses those issues as the insurance process includes automation. This can transform and simplify the claims process so that a farmer does not need to submit a claim and, at the same time, the insurer does not need to send a claims adjuster into the field. In addition, this process results in reduced administration costs and, subsequently, a higher percentage of premiums being used for claims payment and immediate, fully trusted pay-out.
After the coordinated launch earlier this year with 200 farmers enrolled who are at risk of losing their crops due to extreme weather, the system made pay-outs to farmers in this initial operations phase. The companies will now move forward by seeking solutions to some of the challenges identified in the next phase of the project as cropping season starts in November. The main goals of this follow-on phase are to refine the system’s efficiency and scale the number of farmers who will benefit from the microinsurance.
This coordinated effort includes Oxfam in Sri Lanka (OiSL), which has long-standing expertise in agriculture, deep engagement with the local farmer-community, and an understanding of the important role of agricultural insurance. The blockchain solution was tested as a part of OiSL inclusive insurance project. Oxfam in Sri Lanka’s efforts are amplified by Aon’s expertise in reinsurance and global insights, as well as Etherisc’s knowledge in applying blockchain technology to insurance. Sanasa Insurance, Oxfam in Sri Lanka’s partner, also joined the initiative to provide local expertise, networks, and operational execution.
In the first season, the group identified several challenges in the field to be improved on going forward. First, many farmers in the area lack electronic devices and Internet access, meaning the project may look to provide offline solutions and devices through local insurance support from Sanasa to facilitate registration in the group policy. Second, the project may seek to build a network of additional data sources to round out the automated data provided by weather stations. Third, farmers commonly manage transactions with cash or cheques only, which inhibits the process of automated payouts, requiring research of mobile payment options in Sri Lanka.
The project members will all gather at the Decentralized Insurance Conference in Malta on November 5–6 to detail the results of the first season and outline the pathways forward for an enhanced project in its second phase.
International organisation Oxfam, works toward a Sri Lanka where everyone lives in dignity and peace, enjoying prosperity and justice by helping people build better futures for themselves, hold the powerful accountable, and save lives in disasters. Oxfam’s mission is to tackle the root causes of poverty and create lasting solutions.
Etherisc has developed a protocol for decentralized insurance apps, creating an alternative to traditional insurance. The company’s mission is to make the purchase and sale of insurance more efficient—reducing operational costs, increasing transparency, and democratizing access to reinsurance investments. Telegram.
- Token Taxonomy Workshop – - January 24, 2020
- Deloitte Bullish on Libra Project in New Report - January 22, 2020
- Busted: SEC Charges Blockchain Marketplace Founder Sergii “Sergey” Grybniak for Fraudulent ICO 2017 - January 22, 2020
- DC Blockchain Advocacy Group US Chamber of Digital Commerce Supports Telegram Vs. SEC Case - January 22, 2020
- BIS Forms New Central Bank Think Tank to Assess National Cryptocurrencies - January 22, 2020
- Bank of England Pondering National Cryptocurrency - January 22, 2020
- Infamous Online Gaming Community Clanbase to Relaunch With Blockchain Technology in 2021 - January 21, 2020
- Chainalysis: 2019 Saw More Cryptocurrency Hacks – Total Amount Stolen From Exchanges Dropped To $283 Million - January 21, 2020
- J. Christopher Giancarlo, former Chairman of the US Commodity Futures Trading Commission - January 21, 2020
- Ethereum Classic Labs Donates $1 Million to UNICEF Innovation Ventures - January 20, 2020
- Busted: SEC and U.S. Attorney’s Office for the District of New Jersey Files Lawsuits Against Fraudulent ICO that raised $30 million - January 17, 2020
- Kenya Issues Second ICO Warning After Investors Lose €24+ Million Euro - January 17, 2020
- Neufund Wraps Tokenised Equity Crowdfunding Series B with Greyp Bikes raising €1.4m EUR - January 17, 2020
- U.S. Lawmakers Pondering “Crypto-Currency Act of 2020” - January 17, 2020
- New Blockchain-based Visa Token Service Set To Launch in 2020 – Set to Reach $1 Trillion - January 17, 2020
- Germany’s New Shore Invest Launches STO Ship Financing Platform – Tokenised Fractional Ownership - January 16, 2020
- Open Source Luminary Marc Fleury Enters Crypto Arena with Announcement of New Crypto Asset Class and Continuous Token Offering Sale - January 16, 2020
- UN Warns Public Not To Attend North Korea Blockchain and Cryptocurrency Conference 2020 - January 16, 2020
- Fiat-to-Crypto Gateway Solution, Banxa, Raises $2 Million USD Series A Round Led By NGC Ventures - January 15, 2020
- United Africa Blockchain Association Plans to Fire Up Blockchain Adoption - January 14, 2020