HurricaneGuard Utilizes the Ethereum Blockchain to Automate Insurance Payouts
Cryptocurrencies are akin to natural catastrophes when it comes to unpredictability. However, HurricaneGuard has introduced a new solution which aims to take the natural disasters insurance sector by storm with the help of blockchain technology. The Puerto Rican brand makes use of smart contracts to facilitate automatic insurance payout in the event of a natural calamity.
Quick Relief from Disaster’s Aftermath
Powered by Etherisc, HurricaneGuard serves the niche market for disaster-related insurance payouts. The technology deployed by the startup can initiate automatic payouts if high wind speeds are recorded within 30 miles of the customer’s home or business place.
For the uninitiated, Etherisc is an open-source platform which uses the Ethereum blockchain to create insurance products. Founded in 2017, the company raised $3.6 million in its initial coin offering (ICO).
While hurricanes might not be frequent, it is essential for people in vulnerable areas to have an effective coping mechanism in place to deal with a storm’s aftermath.
The year 2017 saw Hurricane Harvey take 68 lives and inflict $125 billion in damage to the U.S. The ruckus caused by the infamous hurricane tied it with 2005’s Hurricane Katrina as the costliest tropical cyclone on record.
The effects of the hurricane were magnified due to the traditional process of disaster-related insurance payouts, which could take as many as six to nine months for realization, and in some cases, even complete non-payment. Although there was some respite in the form of cryptocurrency donations to help the victims, the event exposed the inefficiency of traditional mechanisms of insurance payouts.
The DLT-based startup offers an affordable, instant insurance payout service which can disburse amounts in just 24 hours. In a helpless situation, the rapid insurance payout could prove to be a blessing for the victims, as it could ease the task of paying for bare life necessities such as food, gasoline, water, and medicines, among other things.
Further, with a minuscule fee of $10 a year, HurricaneGuard ensures that small business owners and people from the low-income class can afford the service without burdening their pockets. The firm also promises complete transparency and no deductions with regard to payout.
While blockchain technology continues to find new avenues with each passing day, its use in disaster management space is commendable.