Insurance & Ethereum, Here’s How They Connect
Blockchain could be highly related to the the insurance industry, given its ability to connect data. This past week French insurance AXA tested a blockchain platform to manage flight insurance. The test is currently being performed in flights from Paris international airport and the U.S. and it has big expectations to be inserted internationally. The product launched on the mainstream market is called “Fizzy” and it is made of smart contracts linked to an ethereum platform. This platform scans information of delayed flights and if the flights coincide with an insurance policy, the payment is automatically performed.
The industry of travel insurance has been gaining advantage due to terrorism and harsh climate changes and the prediction is that the the industry will continue to increase. Therefore, a lot of blockchain startups have tried to develop measures for flight insurance but none of them succeeded.
Fizzy offers the benefit of producing a “parametric insurance” which eases risk management, reduce costs and increase customer satisfaction. By producing so it creates a balance for the payment of the insurance based on the given cause of the flight delay.
The reason why blockchain would be appropriate to supply the insurance sector is due to the trust it guarantees. It also reduces the need of receipts and other paperwork which also facilitates the process for customers.
Furthermore, the blockchain could be expanded to cover other types of transportation or segments such as healthcare. With a simple connection to a record uploaded, AXA could provide an instant pay-out given the situation. The use of AXA on insurance industry could improve the way clients interact with companies and increase customer satisfaction. It could start with personal insurance but work its way through corporate and life policies.