As per the report, the aim of the insurance platform is to provide a way for Sri Lankan farmers to access risk protection in the face of potential crop-obliterating weather conditions. The report states that almost 200 farmers have enrolled to use this platform for “micro-insurance.”
According to Michiel Berende, the Chief Inclusive Officer at Etherisc, many farmers do not have insurance:
"Farmers represent a third of the workforce and account for almost 20 percent of the economy, yet very few have insurance. This made Sri Lanka a perfect candidate to feel the benefits of decentralized, collaborative and automated insurance. This alliance is really a cooperation between all and showcases blockchain for social good."
The country director of Oxfam in Sri Lanka, Bojan Kolundzija, said that this new blockchain solution will provide risk protection to “a large portion of the Sri Lanka economy."
According to the press release, some major barriers to farmers obtaining insurance have included lack of affordability and clarity on how the coverage would provide specific benefits. The new blockchain platform purports to solve these issues by making coverage cheaper and easier by automating the claims process.
As previously reported by Cointelegraph, there is a growing field of tech solutions for insurance — the so-called “insurtech” field — and blockchain-based applications feature prominently.
A report by Hartford’s Insurtech Trends said that insurance companies are currently using blockchain tech to “streamline processes, provide transparency, and enhance security,” along with data management and protection, reducing administrative costs and boosting consumer trust and loyalty.
Research firm MarketsandMarkets predicted in 2018 that the value of blockchain components in the insurance market will reach $1.4 billion by the end of 2023.