Etherisc to Leverage Chainlink Oracles For Decentralized Flight Insurance Product
Parametric insurance built on top of decentralized infrastructure is one of the most exciting frontiers of innovation in the insurance industry. Not only does this insurance model foster new product designs and increase market participation, but it redefines underlying trust dynamics between insurance providers and policyholders.
Etherisc continues to push the boundaries as the market-leading protocol for developing decentralized insurance products. To this end, we are proud to announce that we have a working decentralized flight insurance Proof Of Concept on Rinkeby, an Ethereum testnet, that incorporates reliable data feeds delivered by Chainlink. By combining the decentralized security of Ethereum with the decentralized oracle framework of Chainlink, users have access to a trust minimized insurance product that is secure end-to-end.
To understand the significance of this achievement, we outline the current limitations of flight insurance, how smart contracts can open up new value in the industry, and why decentralized data sourcing via Chainlink is key to developing a more secure and exceedingly functional solution.
Understanding Current Flight Insurance Models
Many of the problems in flight insurance revolve around inefficiencies and delays in claims processing that ultimately increase costs, extend process times, and cultivate mistrust between insurers and policyholders.
In the current model, users must manually file claims, which are then processed internally by the insurance company to verify whether or not the claim is entitled to compensation in accordance with their specific policy.
An obvious issue that arises is the potential for disagreements between the two parties regarding the payout decision. Ultimately, the insurance provider is solely responsible for arbitrating claims, which leads to certain unavoidable inform...