A decentralized policy for the purpose of covering natural disasters in the hurricane-prone country, Puerto Rico, has been developed by the firm behind a blockchain protocol, specifically made for the insurance industry.
As per the announcement made on Tuesday, 23rd April, two local Ethereum developers approached Etheric, with the idea of developing a policy that would focus solely on providing hurricane damage cover for residents of the Caribbean island.
According to the start-up, the need for such a policy arosed because of the fact that several small businesses and low-income households were naturally hit by Hurricane Maria, however they had to face delayed claims and in some cases where even traditional insurers refused to pay out on policies.
By hosting the policy on its distributed platform, Etheric claims that the new policy would help in reducing premium costs by completely abolishing the middle-men in the insurance claims process, not only that but it would also provide more transparency, as every single transaction would be displayed to both insurers as well as residents.
The team also further said that by utilizing embedded smart contracts, all automated insurance pay-outs based on predetermined weather parameters would be initiated by the decentralized policy.
Stephan Karpischek, the Co-founder of Etheric, also expressed his opinion on the upcoming launch by saying:
“The hurricane insurance is the very first actual use case that symbolizes our belief in what insurance should accomplish, that is to help individuals solve actual problems while also being able to manage risks in their communities.”
The new policy symbolizes the most recent project of Etheric, in which the company has utilized the blockchain technology to improve efficiency and customer satisfaction within the insurance industry.
Speaking at an event last Friday, Etheric co-founder Christoph Mussenbrock added another product to its list which is in process of being developed by the firm. He claimed that this new product would complete automate insurance pay-out’s when flights are delayed based on data transacted over the Ethereum Blockchain.