The United States of America has witnessed an unprecedented amount of natural disasters, which has left billions of dollars’ worth of damages in their wake. Concurrently the insurance industry in the country is stumped by the sheer number of insurance requests and they have decided to employ Ethereum’s blockchain to increase their efficiency.
The disastrous Harvey, Irma, Maria, and now Florence has led to a proportional increase in insurance requests to cover things like damaged or lost homes and cars. Insurance companies have to rapidly approve requests for funds for the damages caused by the hurricanes. The current process of approving requests that come following a natural disaster is quite complicated.
Firstly, a team of adjusters and agents have to screen the requests to filter out fraudulent requests. Along with that, the companies have to coordinate with reinsurance companies, that help to cover the windfall of expenses that follow these types of disasters. Many insurance analysts and blockchain experts believe that technology can come in handy to resolve the industry’s problems.
Blockchain insurance solutions
Etherisc, a newly founded Switzerland-based blockchain startup, is using the Ethereum blockchain and smart contracts to work out the inefficiencies of the insurance industry by automating certain processes that are manually performed by employees. For one this process is cheaper and the automation reduces the scope of fraud and human error, saving insurance companies a fortune.
If Etherisc’s system is widely adopted, the automated insurance payouts would enable the victims of natural disasters to secure funding to pay for the resulting expenses such as hotel/motel costs, car rentals, and repairs to water or infrastructure damages to their homes. It would particularly be helpful for families whose homes have been completely destroyed.
Renat Khasanshyn, Etherisc’s co-founder, spoke to Forbes and elaborated about their system.
“We’d love to offer policies in Virginia. Yet launching a product in multiple locations is no easy task.”
Since its founding in 2017, Etherisc has managed to raise $3.6 million through an Initial Coin Offering. Their blockchain system could potentially save insurance companies tens of millions of dollars and aid the hundreds of thousands of people that file insurance claims following disasters.