OiSL Launches First Blockchain Platform for Weather Insurance
OiSL, Etherisc and Sanasa representatives at the Oxfam office in Sri Lanka, following the launch of the weather insurance index.
Oxfam in Sri Lanka (OiSL), Etherisc, AON Plc together with Sanasa Insurance, have officially launched one of the world's pioneering blockchain platforms for weather index insurance. The global partners have worked to provide an agricultural insurance system which is affordable for farming communities in Sri Lanka, who are often at high-risk of losing crops due to extreme weather.
OiSL's expertise in the agriculture sector of Sri Lanka and long-standing engagement with farming communities has helped to bring together, vulnerable farmer-groups, who will benefit tremendously from the insurance systems. Most local farmers lack an understanding of how insurance schemes work. Blockchain technology helps automate the insurance products, thereby simplifying the claims process. Farmers are able to insure their crops against the amount of rainfall. The levels of rainfall and estimated payouts are set by an independent third party. Levels are set for both droughts and floods, with payouts starting at the minimum threshold and increasing according to the severity.
Following a disaster, the payment process starts automatically, and payouts are distributed within 2– 4 weeks. Recipients are thereby able to re-engage in their livelihoods in the aftermath of a natural disaster.