Decentralized Insurance Platforms
Many people as soon as they hear about blockchain, they immediately associate this word with Bitcoin or finance in general. In reality, its application fields are very numerous and the beauty of blockchain is that the only limitation it has is our imagination.
Let’s look at reality and see what are the positive and innovative aspects that the blockchain has brought to the insurance industry and in particular, to this small portion of the market called Decentralized Insurance Platform (DIP).
Essentially, these companies use blockchain in their business model to guarantee a valid, immutable and transparent certification on insurance policies, allowing the insured client to be reimbursed at the very moment the damage occurs, in short, instantly.
Like all traditional systems, prior to signing the policy, the user will pay a certain amount of insurance “premium” in return.
There are various ways to take advantage of the great potential of the Decentralized Insurance Platforms and each of them is strictly related to the field of application.
For example, this can be extended to flight companies that, thanks to the adoption of this technology, will be able to cover and reimburse their customers in case of unforeseen events on their flights as soon as the inconvenience occurs.
This is the case of Etherisc which has developed an insurance solution for flight delays, whose payments are automatic and instantaneous.
Currently, Etherisc is without a shadow of a doubt the leading company in the DIP sector, both in terms of the competence with which it carries out its work in support of the entire community and the exhaustive range of products it offers.
This platform is based on a decentralized insurance protocol which allows the community itself to develop insurance products. Among these, there are many use cases that cover different types of risk.
There are products aimed at covering pure risks, i.e. those risks that cannot be managed, such as natural events, death and illness, for example. In particular, among the various services offered there is the availability of hurricane protection and crop insurance.
The former is designed specifically for small business owners or those who generally have a low level of income. For this type of insurance, the platform relies on weather stations and, as soon as they register a certain wind speed that can be linked to a hurricane, the policyholder receives an instant payment.
The second activates automatic payments to cover catastrophic crop events, such as droughts and floods, which are recorded by dedicated government agencies. The amount of compensation depends on the characteristics of the crop itself and the location of the land.
Finally, sticking to the blockchain theme, Etherisc also offers insurance on crypto wallets, protecting against hacker attacks, and protection on collateral deposited when requesting a crypto loan; if the collateral falls below 90% of its value or more, the insured user can be reimbursed up to 100% of the loan that was issued.
Poleecy is an ambitious project from Italy, a startup that operates in the field of instant insurance and which has adopted the blockchain to make their idea possible. Instant insurance can offer temporary policies adapted to different products and situations such as cars, travel, pets, holidays, home and sport.
After developing the project, Poleecy has signed an important strategic partnership with one of the most innovative insurance brokers on the market, the “European Insurance Brokers”.
The goal of Poleecy is to provide clients with the possibility to take out an insurance policy wherever they are by simply accessing the platform in a few clicks, thus providing an immediate response to what could be an urgency on the part of the client.
Thanks to the use of the blockchain they have created the “micro policy”, an insurance policy that has the advantage of being totally transparent, immediate, cheap and of short duration.
Moreover, the system combines the blockchain with Artificial Intelligence to guarantee a better offer adapted to the different needs of each customer.
In short, through their services, Decentralized Insurance Platforms offer solutions to help people, providing greater security and speed in the process of risk coverage, something that traditional systems render inefficient, especially at the expense of those affected by tragic events.