A startup from Switzerland Etherisc developed a blockchain system to work effectively with the insurance payments to victims of natural disasters. Potentially changing the principles of operation of the entire insurance industry, the initiative is particularly relevant for the United States, faced with an unprecedented number of devastating hurricanes.
As you know, Harvey, Irma and Maria left after losses of billions of dollars and a huge number of insurance claims relating to the destroyed and partially affected houses and cars. As a result, the insurance industry has faced serious challenges: companies need to consider applications, which is especially difficult in a situation with a huge number of hits after several natural disasters.
The process of settlement of claims in such cases include a number of features. First, the team of insurance agents engaged in the evaluation should “filter” people really claim to compensation: there are cases when the scammers are trying to capitalize on a situation that became a disaster for others. Insurance companies also need to work closely with companies to reinsurers, which help to cover unforeseen expenses always appear in such situations.
Overall, considering the existing system complicated and inefficient for incidents of this magnitude, many analysts of the insurance industry and experts consider innovative blockchain technology as the best solution to the problems of the industry.
Blockchain startup Etherisc, which started its operations in 2017, offers its own version of optimization of work of the enterprises of the industry, using the Ethereum blockchain and smart contracts, which involved the automation of certain processes that currently are manual. This will not only reduce costs, but also significantly reduce the frequency of fraud and error arising from the human factor that is costly to insurance companies.
If the decision Etherisc will be widely distributed, this will lead to the emergence of a system of automated insurance payments, ensuring effective management of the funds, addressed to the victims of natural disasters to cover expenses, including payment for hotel accommodation, car rental and repair of systems of housing and infrastructure and water.
Quick insurance payments is especially important for people whose homes were completely destroyed: the faster the demand will be considered, the sooner people will be able to return to normal living conditions.
It is obvious that at present the problem is most acute in the United States, on the East coast which is approaching a new hurricane Florence, but, probably, the victims will still have to wait.
“We would love to offer policies in Virginia. Still, the launch of the product in multiple locations — not an easy task,” said co-founder Etherisc Renat Khasanshin (Renat Khasanshyn).
It is worth noting, since the Foundation, ICO startup has managed to raise $3.6 million the team is Now working on the implementation of its decisions on the basis of the Ethereum blockchain in the processes of several insurance companies, helping them with the development of insurance policies using smart contracts. In case of success and wider dissemination of the system Etherisc, it can save insurers tens of millions of dollars and help hundreds or thousands of people who turn to the company for insurance payments after natural disasters.
Commenting on the situation with 225 000 not yet settled insurance claims of victims of hurricane Maria in Puerto Rico, Khasanshin said that the company plans to “begin to prepare policies for the next hurricane season in Puerto Rico.”