AXA, the insurance giant and the second largest financial company in the world with total assets of one trillion dollars and an annual income of six billion dollars, has launched an insurance product that uses smart contracts via the public blockchain of Ethereum.
Bitcoin Profit – Smart Contract on Ethererum Blockchain
The product called Fizzy is similar to Etherisc, formerly known as FlightDelay, where individuals pay an insurance premium and automatically receive compensation if the flight is more than two hours late. The automated part is handled by the Smart-Contract using a “simple” if/then rule, while the flight data is made available by third parties and linked to the Smart-Contract in various ways. In Fizzy, the premium and compensation payment process is not yet automated. They also plan to add crypto currencies, but also said:
“It is not the easiest feature for legal, regulatory and accounting reasons.
New lines of code have been unveiled
The company publicly unveiled the intelligent contract yesterday, which contained only about 200 lines of code. Laurent Benichou about his experiences with the Smart Contract on reddit:
“It’s much more complex than I expected! Air traffic data is neither 100% available nor clean, and the need to test airworthiness is difficult for potential business partners to accept. In traditional insurance, we would insure all flights and it would be the customer’s responsibility to provide proof of delay”.
The insurance itself determines that there is a flight delay or an event that triggers compensation, so that this can be done automatically without the customer having to prove it. This means that in at least simple cases, several hours of working time https://www.onlinebetrug.net/en/ can be saved, as the personnel no longer have to manually analyze the cases of damage. In addition, comfort can be increased considerably on the customer side, since no more paperwork has to be submitted.
“We plan to expand beyond our flights in the future. We believe that parametric insurance is a very strong application for the use of public blockchain.”
A parametric insurance is an if-then insurance, so to speak, which does not compensate the entire loss, but clarifies if event X occurs, then you receive compensation Y. To simplify matters when a certain event occurs (e.g. earthquake level 3), the smart contract takes effect by automatically generating and confirming the data by the respective official authority and then transferring the percentage sum insured, e.g. 30 percent, directly to the claimants. Of course there would be a huge market for such applications, but is there also a market for Fizzy? Benichou replied as follows:
“Even though it’s always hard to say for a brand new product, we think there is a retail market today. As airlines become more and more customer-oriented and this type of service is automatically offered to customers, the market opportunity for insurers will shift to business to business (B2B).