Oxfam International, the UK-based charity group, has stated that it has successfully completed delivering microinsurance to Sri Lankan paddy farmers using a blockchain-based platform.
Etherisc has stated that Oxfam’s blockchain-powered insurance platform disbursed payments to Sri Lankan farmers who lost their crops due to drastic weather conditions.
Oxfam’s Sri Lankan business division, along with associates Aon plc and Etherisc, will continue to offer solutions to issues faced by farmers during the cropping season, which begins in November.
Earlier, problems such as non-availability of cost effective and dependable insurance offerings, absence of knowledge about the manner in which suitable insurance can safeguard a farmer and modalities involving a claim have regularly acted as barricades preventing farmers from opting for insurance.
The advent of blockchain technology can modify and streamline the insurance claim procedures, leading to a cut in management expenses and premiums.
Etherisc CEO Michiel Berende was obviously pleased with the developments. Berende said
“We are proud to have real-world, on-the-ground success from a blockchain solution for microinsurance […] We are delighted with the first phase results and we are excited to drive on and help more farmers.”
Back in June 2019, Oxfam collaborated with Australian tech firm Sempo and blockchain firm ConsenSys to trial feasibility of stablecoin Dai (DAI) for assistance in areas affected by natural disasters.
With Australian government’s backing, a support program, named UnBlocked Cash, was launched. Oxfam and Sempo trialed the system in Vanuatu, one of the most disaster-prone countries across the globe. In September, Oxfam began the second phase of the disaster relief program.
Back in June, Joshua Hallwright, Oxfam Australia’s humanitarian head stated that it was “highly likely that Oxfam will use stablecoins or other distributed ledger technologies to provide cash aid in disaster responses in the future, either in Vanuatu or elsewhere.”