7 blockchain insurance products for the future
The relevance and benefits of blockchain-powered insurance is an oft discussed topic.
Given the technology, such insurance products can lower premiums and significantly simplify the claims process, as we have previously discussed.
But what types of insurance will be able to best leverage on blockchain technology? We look at 7 products here.
1. Agricultural insurance
Through pulling information from trusted third-party sources, blockchain-powered insurance for crops or livestock can be offered to farmers whose incomes largely depend on their harvest. This also aligns with PolicyPal Network’s aim of reaching out to the unbanked people of the world, especially in developing countries, who are without sufficient access to insurance protection.
2. Event disruption from weather
Event organisers can benefit greatly from having insurance from having events disrupted by weather. Similar to agricultural insurance, information can be pulled from a verified third-party. For example, once the measured rainfall reaches the agreed limit, payouts will be automatically credited to the insured. Individuals will also benefit from personal large-scale events like weddings.
Given the number of floodings that have taken place in Singapore in recent years, this is beneficial for shop proprietors in areas prone to flash floods. As reported in the news, these floods can incur costs, from merchandise damage to property damage. Instead of having to go through lengthy claims processes, merchants can have payouts credited almost instantaneously.
Using technology to monitor driving behaviours and bring insurance premiums down is not a new idea. They use telematics and an onboard diagnostics device to monitor safe driving. Blockchain technology can take this further through smart contracts, which can make processes like submitting claims a breeze.
With products like Google Home and Amazon Echo on the market to make today’s homes smart, blockchain can leverage on the Internet of Things to cater to home insurance as well. Sensors can detect an unfortunate event like power cuts or burst pipes. Such events are harrowing enough for home owners when they occur. A lengthy claims process is the last thing they need.
6. Personal accident plans + life insurance
Another aspect of blockchain-powered insurance is creating insurance powered by communities — or P2P mutual aid insurance. This is when several people pay a token fee into a pool for coverage of up to an agreed amount for. This creates a lower entry barrier, especially when the combined risk is spread amongst a large group of people, thus significantly lowering each individual’s contribution.
A P2P mutual aid model for personal accident plans and life insurance will greatly benefit those in emerging markets. It gives them access to much-needed insurance coverage instead of forking out high premiums.
7. Travel insurance + flight delays
Probably one of the worst things that can happen after carefully planning out your holiday. While much of this article has discussed the potential of blockchain in insurance, we’ll end it with one that has materialised.
Recently, we launched a fully automated Flight Delay Insurance product that was powered by blockchain technology.
The terms of your smart contract are triggered by flight departure and arrival data, which will be monitored constantly for scheduling changes. The second your flight is delayed, all claims are fully automated — no lengthy process, no paper-filing, no hassle at all. Your claims will be credited automatically to your bank account.
About PolicyPal Network
PolicyPal Network is a decentralised insurance protocol that uses data to bridge the gap between consumers and insurance providers by providing a new level of accessibility within the insurance ecosystem. The company also works with insurers to provide CryptoProtect insurance coverage for digital assets and smart contracts. PolicyPal Network is a member of Singapore Fintech Association and ACCESS. PolicyPal Network’s affiliate entity, PolicyPal Singapore, has an active user base of 50,000 for its app, which helps users to manage, buy and optimise their insurance policies.
Currently, PolicyPal Network has partnerships with two insurance companies, FWD and Ergo, to explore potential use cases of PolicyPal Network’s decentralised insurance protocol together. Furthermore, PolicyPal Network has established collaborations with blockchain projects NEM, QTUM, Sentinel Protocol, Digix and traceto.io to offer CryptoProtect and mainstream insurance products for the projects themselves, along with their respective communities.
Learn more about PolicyPal Network:
Telegram (Chinese): https://t.me/PolicyPalNetworkCN
Blog (English): https://medium.com/@policypalnet
Blog (Chinese): https://www.jianshu.com/u/04e398cadb84