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Aon, Etherisc and Oxfam in Sri Lanka have recently announced a joint program to help rice farmers in Sri Lanka enjoy micro-insurance.
The solution offers Oxfam and its partners a low-cost automated indexed insurance product with a higher percentage of claims premiums and immediate payment.
"We have been able to establish a solid base to support Sri Lankan farmers, we have educated farmers, building trust and creating lasting solutions, which is significant as we are now able to expand our reach by applying the latest available technologies, that should also enable us to deliver more real and lasting results, "said Bojan Kolundzija, Country Director, Oxfam.
The new blockchain solution will enable farmers to access reliable and cost-effective insurance products and make them simpler. According to the press announcement, the solution eliminates the need for the farmer to file a claim and the insurer to send a regulator of claims to the camp – two key issues that have been barriers to dissemination micro-insurance in rural areas.
"By bringing micro-insurance, with very small premiums, to the lush rice farmers of the rice fields, we are empowering the economic and human possibilities," said Hugo Wegbrans, general manager of Europe, Middle East and Africa brokers, Aon.
"It's not about reducing traditional insurance, it's about allowing farmers to manage risks in order to thrive and help them recover when they face adversity," he added.
Access to micro-insurance will help farmers overcome irregular-cycle cycles and escape poverty. It also prevents them from falling prey to risks of unregulated usurers.
"For low-income families, a loss event is a particularly delicate and difficult time, and they need a quick, simple and clear complaint process.With the blockchain technology you can make a payment immediately, eliminating in some cases the need for farmers who do not have access to traditional regulated lending services to turn to a usurer or a loan shark.Trend triggers will be mutually agreed upon and monitored by external data providers where blockchain makes such data safer and more reliable, " declared Michiel Berende, inclusive Lead Insurance, Etherisc.
