Oxfam International, a charity organization in the United Kingdom, announced its success in utilizing blockchain-based delivery system of microinsurance for rice farmers in Sri Lanka. Oxfam in Sri Lanka has partnered with startup Etherisc and Aon to create the system.
In a press release, it said that the system had made pay-outs to local farmers who keep facing risks of losing their crops due to extreme weather in Sri Lanka. They will also look for other solutions to other challenges that might affect crops this new cropping season which starts in November.
Sri Lankan farmers have previously lacked affordable and reliable insurance products and they did not understand how insurance would help them to survive. With the technology, all administration costs are lower and a higher percentage of premiums are used for pay-outs.
Michiel Berende, chief inclusive officer at Etherisc, said the company is delighted with the success of the first phase, adding that it will drive on and help more farmers in the future.
In June 2019, Oxfam partnered with Australian tech startup Sempo and blockchain company ConsenSys to test Dai, a stablecoin for helping those victims of natural disasters.
Joshua Hallwright, a humanitarian lead for Oxfam Australia, said Oxfam will use stablecoins or blockchain technology to provide cash aid in disaster-affected areas in the future.
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