UK based charity organization Oxfam International announced the success of its blockchain-based delivery system of microinsurance to paddy field farmers in Sri Lanka.
On Nov. 4 a press release was issued where Etherisc announced that Oxfam’s blockchain-based insurance system made payouts to the Sri Lankans farmers who continue in losing their crops due to extreme weather conditions.
Oxfam in partnership with Etherisc and Aon plc, will continue in seeking solutions to tackle the challenges that will present itself as the new cropping season starts from the month of November.
Blockchain To Improve Farmer’s Lives
Farmers were unable to utilizing insurances due to lack of reliable insurance products, and the lack of understanding of how these insurances would help a farmer survive, and when and how a claim would be paid.
The use of blockchain technology can help in simplifying the complicated insurance process while reducing administration costs and a higher percentage of premiums being used for a fully trusted pay-outs.
The Chief inclusive officer at Etherisc, Michiel Berende said:
“We are proud to have real-world, on-the-ground success from a blockchain solution for microinsurance […] We are delighted with the first phase results and we are excited to drive on and help more farmers.”
Oxfam’s Uses Stablecoins For Humanitarian Aids
A philanthropic initiative was launched dubbed as Unblocked Cash with the support of the Australian government. To test the system, the world’s most natural disaster-prone country was chosen-Vanuatu.
In September a second phase pilot program was initiated to further distribute disaster relief.
Joshua Hallwright, Oxfam Australia’s humanitarian lead added: “highly likely that Oxfam will use stablecoins or other distributed ledger technologies to provide cash aid in disaster responses in the future, either in Vanuatu or elsewhere.”