Today, July 1st 2019, insurance firm Aon plc released a statement regarding their latest initiative. It is one which sees them team up with global charity, Oxfam, and Ethereum based blockchain developers Etherisc.
All three companies have united in order to provide small-time farmers in Sri Lanka with micro-insurance, against extreme weather.
Due to global warming, financial instability among small farmers is increasing as they are the least able to recover from a low yield after abnormal weather.
This initiative aims to use, I presume, the Ethereum blockchain to autonomously issue micro payouts when they are valid. The use of blockchain tech will also have the affect of lowering the cost of insurance packages.
Both of the above factors are hurdles which prevent farmers in the poorer regions of the world from being able to benefit from traditional insurance policies.
Another added benefit, to the farmers, is the fact that lower admin costs should result in higher payouts.
Since the launch of the initiative “nearly 200” farmers have enrolled in the program.
Applications such as this are exactly what, I think, blockchain technology should be used for. This partnership demonstrates beautiful cooperation between two corporate giants and a tech startup, which is aimed helping the less fortunate.
Michiel Berende, the Chief Inclusive Officer at Etherisc had the following to say on the news:
“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.”
With all the recent hype surrounding the latest Bitcoin bull run, it is easy to forget the purpose of blockchain tech.
Love, peace and happiness.