Aon, Oxfam, and Etherisc have partnered to launch blockchain-based agricultural insurance policies for smallholder farmers in Sri Lanka.
Nearly 200 farmers have enrolled in the solution that delivers microinsurance to smallholder paddy field farmers in Sri Lanka who are at risk of losing their crops due to extreme weather, the firms said in a statement.
The partnership harnesses Oxfam’s longstanding expertise in agriculture and deep engagement with the Sri Lankan farming community, Aon’s expertise in reinsurance and global insights, as well as Etherisc’s knowledge in applying blockchain technology to insurance. Meanwhile, Sanasa Insurance, Oxfam’s local partner, will provide on-the-ground expertise, networks, and operational execution.
Sri Lankan farmers often encounter major barriers to accessing insurance, including the lack of affordable and reliable insurance products, a lack of understanding about how insurance would help a farmer survive, and when and how a claim would be paid.
Blockchain technology, according to the partnership’s proponents, directly addresses those issues by automating insurance process. As a result, covered farmers do not need to submit claims and, at the same time, the insurer does not need to send a claims adjuster into the field. Furthermore, this process results in reduced administration costs and, subsequently, a higher percent of premiums being used for claims payment and immediate payouts.
“Strong collaboration, such as this initiative with Oxfam and Etherisc, allows us to broaden the potential positive impact we can have on people, families and small businesses around the globe,” said Hugo Wegbrans, Aon’s chief broking officer for Europe, Middle East, and Africa. “At the heart of our work is a mission to empower economic and human possibility – and that is exactly what we are doing here.”
