It is an undeniable fact that the United States has gone through devastating hurricanes such as Harvey, Irma, Maria, and the most recent, Florence. These natural disasters have left billions worth of damages to properties and communities. As a response to the resulting problems, Ethereum’s blockchain is now being tested out to solve them.
The insurance industry which a lot of people turn to right after these calamities need increased efficiency in approving thousands of fund requests. Because this issue must be acted on right away, blockchain technology seems to be the next appropriate step to take for the insurance industry.
Right now, the entire insurance payout process is very complicated. It usually begins with a team of adjusters and agents working together to sort the fraudulent requests to the valid ones. This alone is a long and hectic step as a lot of people take the opportunity of the disaster to gain money. Insurance companies also work hand in hand with reinsurance companies who help cover the extra expenses that follow natural calamities.
Along the way, many inefficiencies are committed and so insurance analysts and blockchain experts see the merging of the two industries as the solution to this problem.
A brand-new blockchain startup from Switzerland, Etherisc, is working towards providing answers to the problems the insurance industry is currently facing. They intend to utilize Ethereum blockchain and smart contracts in automated processes that are nowadays done manually. Benefits include being cheaper, fraud reduction and lessening of human error which often costs insurance companies a lot of money.
If this becomes reality and becomes widely used, automated insurance payout could very well be within our grasp. This would enable victims to secure funding for the expenses incurred by the disaster such as temporary shelter (hotel/motel) costs, car rentals, and repairs cost to infrastructural damage to their properties. The faster these payouts are, the quicker the victims can go back to their normal lives.
The co-founder of Etherisc, Renat Khasanshyn, spoke to Forbes about the possibility of using their systems for future natural disasters such as the incoming category four hurricane Florence.
“We’d love to offer policies in Virginia. Yet launching a product in multiple locations is no easy task.”
Through an Initial Coin Offering, Etherisc has raised $3.6 million since its establishment last year. It is also in the initial stages of contributing their Ethereum- based solutions to insurance companies.