Ethereum’s Blockchain to Help Provide Micro-insurance to Sri Lankan Farmers

By Swati Kishore

Blockchain technology is now joining hands with a global organization to alleviate poverty!

Oxfam Sri Lanka, a not for profit charitable organisation that focuses on eradication of poverty, is partnering with Etherisc, a Blockchain-based startup that provides decentralised insurance, in order to provide affordable insurance to the farmers in Sri Lanka. The partnership between the two was announced at the ‘Blockchain for Social Good’ event held in the United Kingdom. Etherisc is a pioneer as it deploys Ethereum’s public blockchain in the insurance sector.

Defined as the coverage for people stricken with poverty, Microinsurance often becomes unsustainable owing to the involved operational as well as distributional costs. Deployment of Blockchain in microinsurance will facilitate such loans as the conditions under which a payout will be carried out will be automated with the use of Smart Contracts. It will also eliminate the aforementioned costs, and hence make microinsurance more sustainable.

As per Michiel Berende, Etherisc’s Insurance Lead, the Blockchain microinsurance solution by Etherisc is being implemented within an already existing weather index insurance product in Sri Lanka which is supported by Oxfam.

Michiel further elaborated on the the project saying:

“We are tapping into the existing distribution channels that Oxfam has, and looking at how blockchain can lower costs and increase efficiencies and make it easier for many more farmers to get access to this product.”

The Country Director of Oxfam Sri Lanka, Bojan Kolundzjia, mentioned that the charitable organisation has been working for years in the Sri Lankan region in order to support the farmers in the region and providing them with much needed microinsurance loans.

Kolundzjia added:

“We are excited to work towards the expansion of this innovative program with the help of blockchain technology and focused insurance industry experience from our partners Etherisc.”

As per reports, Oxfam Sri Lanka and Etherisc are working on the Blockchain-based microinsurance project with an unidentified leading global insurance broker.