Between Harvey, Irma, Maria and now Florence, the United States has seen an unprecedented amount of disastrous natural disasters that have devastated communities and left behind billions of dollars in damage. Ethereum's blockchain is now potentially used to solve many of the problems arising from it.
The huge number of insurance claims to cover things like damaged or lost homes or cars has posed a major problem for the insurance industry, as they must quickly approve requests for funds to replace or repair any home / car damage caused by hurricanes . Now it seems that industry is turning to blockchain technology to increase its efficiency.
The use of Blockchain is the next step for the insurance industry
The current process of approving the large amount of requests that come after a natural disaster is quite complicated and starts with a team of regulators and agents working to filter out fraudulent requests from people trying to capitalize on the disaster. Insurance companies also need to co-ordinate with reinsurance companies, which help to cover expenses arising from these types of disasters
Because of the complicated and inefficient process of accepting claims, especially as a result of disasters such as hurricanes , many insurance analysts and blockchain experts consider the best solution to solve the problems of the sector.
A new blockchain startup based in Switzerland, called Etherisc, is working to provide solutions to inefficiencies in the insurance industry using the Ethereum blockchain and smart contracts to automate certain processes currently performed manually by employees. In addition to being cheaper, automated solutions will also reduce fraud and human errors that can cost insurance companies a fortune.
If the Etherisc system is widely adopted, it will eventually lead to automated insurance payments, which would allow victims of natural disasters to secure funding to pay for the resulting expenses, which include hotel / motel costs, car rentals and repairs for damage to infrastructure or water.
Quick insurance is particularly important for families or for people who have their homes completely destroyed because the reconstruction process can take a considerable amount of time and the faster it starts, the quicker they can go back to a normal situation. life.
Etherisc's co-founder, Renat Khasanshyn, spoke to Forbes about the use of their pending disaster systems, such as the four-hurricane category, Florence, which is heading east to over 140 miles Now:
"We would love to have policies in Virginia, but launching a product in multiple locations is not an easy task," said Khansanshyn
Etherisc raised $ 3.6 million from its foundation in 2017 through an offering of initial tokens and is in the early stages of offering solutions based on Ethereum to insurance companies. If used, their blockchain system could save the insurance companies tens of millions of dollars and could help the hundreds of thousands of people presenting claims for compensation as a result of disasters
While talking about the 225,000 claims for compensation presented by those who were victims of Hurricane Mary in Puerto Rico, Khasanshyn, said: "Our plan is to start writing policies for the upcoming hurricane season in Puerto Rico."
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