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Ethereum´s blockchain could make a big diference in automating insurance payments for natural disasters

The potential that blockchain technology has for diversity of uses in different areas of human development, is almost unlimited. Blockchain continues to demonstrate even in full development, which has quite good to contribute and in the case of natural disasters, prove to be an advantage in automation of payments for compensation.

Disaster relief activity is emerging as a new area where blockchain could be implemented to reduce human inefficiencies in order to streamline a life process. Specifically, the Ethereum blockchain would be testing this applicability at a time when a hurricane is opening on the US east coast beginning this year’s hurricane season.

In the face of natural disasters the activity of the insurance companies increases remarkably in terms of the evaluation of damage to insured goods and the respective compensation that must subsequently occur, which usually take an important amount of time.

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Etherisc is a startup based in blockchain that was founded in 2017 as an open source platform, whose mission includes using the blockchain of Ethereum to create insurance products, and in these precise moments is when it would show practical applicability.

One of the services of this company is to address the redundant and inefficient layers existing in the insurance payment process with the help of self-executing intelligent contracts based on the blockchain platform of Ethereum.

This company for example has provided one of its clients, HurricaneGuard, a Puerto Rican company that is developing an insurance policy, all the technological experience provided by Etherisc. This insurance solution is produced in response to Hurricane Maria of 2017, whose material damages and human losses in Puerto Rico were considerable.

Although Etherisc is not the only company that build blockchain-based solutions to deal with the multiple situations arising from the occurrence of natural disasters, certainly its most immediate plan in the matter is to contribute to the policies for the next hurricane season in Puerto Rico , according to Renat Khasanshyn, one of the founders of Etherisc.

The complexity of relief work in cases of natural disasters and spending on aid has been the subject of strong scrutiny in recent years because cases have been known in which recipients did not receive payments for these aids, they were lost.

This kind of incidents require better controls that allow much more efficiency and reliability to a system that is already loaded with too much bureaucracy that affects the whole.

The effective response that the blockchain technology can bring to these situations would limit the bureaucracy doing it aside, and would at the same time give greater transparency, speed and verifiability, and the efficiency would increase achieving better results in the relief of the situations derived from the occurrence of a natural disaster.

In the field of insurance companies, the blockchain technology in this type of case and in general in all types of cases can perfectly alleviate procedural burdens for the evaluation of claims and losses, as well as the origin of the claims, with properly enabling smart contracts that  self-executing verified the conditions programmed in them at the time of its stipulation.

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