Traditional insurance companies have proven to be completely unreliable in case of Hurricane Maria's visit to Puerto Rico. And local Ethereum engineers have decided to take up the slack.
Written in just 90 days, Etherisc is a new decentralized platform for building insurance programs. And yesterday they announced their first blockchain-enabled insurance product to help combat catastrophic weather in Puerto Rico. The hurricane insurance on the new platform will allow people to avoid traditional insurance companies altogether, because they proved to be wholly inadequate in the past six month since Hurricane Maria hit many small businesses and households. Even up till now, some of the victims haven't gotten their insurance claims processed, and a lot of people received refusals to pay out policies.
Etherisc's decentralized protocols eliminate the need for the large insurance providers to be involved in the process, utilizing the library of automated smart contracts to record transactions in a transparent and secure way. There is no middlemen to ramp up their commission, thus reducing the price of each individual insurance policy for households and small businesses.
Additionally, the payouts are triggered automatically by the parametric algorithms, so that the program uses a set of predetermined weather conditions to issue a payout immediately. This also helps to lower the costs and make insurance more affordable for the low-income families.