Blockchain technology, like all innovations, can be used for both or abused. When the news is often littered with stories of fraudulent scammers, greedy mega-companies, or illicit behavior from young rich businessmen, it’s refreshing to hear that there are companies in the cryptoworld who take advantage of the opportunity to do good work.
Companies such the firm working on a blockchain protocol which has designed a decentralized procedure in order to cover natural disasters in Puerto Rico.
Etherisc was approached by two Ethereum developers to design a policy which aims to provide hurricane damage insurance cover for the Caribbean island which is particularly prone to natural disasters, according to a recent announcement.
The pressing need to create an insurance policy came after the damages of Hurricane Maria hit small businesses and local low-income households hard. Many of the affected were held up by delays when claiming insurance and faced flat-out refusals when traditional insurers declined to pay out on the policies.
Etherisc offers that the new decentralized policy will help be able to customers by cutting out premium costs which are often faced. This will be done mainly by providing more transparency for its customers since every transaction will be visible to both the customer and the insurer, which will eliminate hidden fees. The removal of the ‘middleman’ of insurance procedures will also provide customer relief. Co-founder Stephan Karpischek suggests that owing to this there will be “no claims process whatsoever”.
The policy will make use of embedded smart contracts which will structure payouts on variables preset according to the weather and will prompt automatic insurance payouts accordingly.
Karpischek commented ahead of the launch, saying that the “hurricane insurance is the first use case that embodies our belief in what insurance should achieve – helping people solve real problems and manage risks in their communities.”
If this project takes and is successful in the proposed endeavors it could mean good things not just for those in the hurricane areas but for a positive shift in business etiquette.