The insurance company Aon said that it has partnered up with the Oxfam and the insurtech startup Etherisc to develop a decentralized insurance platform for Sri Lankan farmers. Around 200 farmers enrolled on the first day for micro-insurance policies that protect farmers’ financials in case of crop losses due to extreme weather conditions.
The official launch of the platform for enrollment of farmers was on July 1st, according to the report. Etherisc works to develop protocols for insurance applications on blockchain. Michiel Berende, Chief Inclusive Officer at Etherisc, said:
Farmers represent a third of the workforce and account for almost 20 percent of the economy, yet very few have insurance. This made Sri Lanka a perfect candidate to feel the benefits of decentralized, collaborative and automated insurance. This alliance is really a cooperation between all and showcases blockchain for social good.
The partnership is conducive for the particular blockchain platform, as Aon plc works for a broad range of health, retirement and life insurance policies in addition to others.
With the insurance related experience of Aon, Oxfam, the organization that works to eradicate poverty, has planned to make a decentralized platform for poor paddy field farmers of Sri Lanka for the provision of micro-insurance plans. Etherisc’s blockchain experience vouches for their credibility in launching this project. Bojan Kolundzija, Country Director of Oxfam in Sri Lanka, stated:
“Oxfam in Sri Lanka’s expertise in climate-smart agriculture and our long-standing engagement with farmer communities provide us with in-depth knowledge about the opportunities and challenges that farmers have to climate and weather events.”
Offering his views about the new blockchain platform, he stated:
Allowing farmers access to the blockchain platform is an important milestone that is bringing an effective and affordable risk transfer mechanism to a large portion of the Sri Lankan economy.
Act of adding insurance-related businesses to blockchain can actually serve as a killer use case for the technology. Cryptographically secure solutions that can prevent frauds can be expected from such applications.
This can make insurance claims easier, added with transparent pay-outs and insurance payment schemes. Easier insurance claims can make the administrative costs much lower, actively achieving blockchain’s purpose.
Tapping into new use cases of blockchain for the betterment of the world instead of using blockchain just for the sake of it has always been the purpose of these advancements in technology. Anthony Parker, the blockchain strategist and founder of Cuberoot64, recently shared his views regarding the new blockchain startups entering the space.
He identified the problem linked to blockchain that people were making decentralized applications which had better alternatives in the centralized domain. Fused with the solution should be a better UI and UX that can actually help people better understand blockchain applications, which can trigger mass adoption. He stated:
It is fundamental that startups understand whether the use case needs a blockchain solution at all. Blockchain startups can help crypto adoption if they utilize best practice when designing dApps and look to promoting user adoption.