Prototype Dev for Blockchain-Based Insurance Software
SmartAgRisk is a blockchain based insurance software for the World Bank. It is a peer-to-peer platform that facilitates the sale of parametric insurance contracts between its users. There are two types of users – Buyers and Sellers. The buyers are the users seeking insurance and the sellers are one offering the insurance. Currently the platform has two types of contracts – Weather contracts and Price contracts.
These types of contracts pay out when the value of a given parameter has crossed a predetermined threshold during a time interval with start and end date defined by buyers.
- Weather contracts: These contracts are dependent on the weather parameters/index for a specific geographical region on a specific date. The insurance is paid if the chosen weather index on the date specified in the contract is below (or above) the threshold specified in the contract. The platform gets external satellite weather data to determine the needed parameters.
- Price contracts: These contracts are dependent on the price of the crop insured on a specific date.
The insurance is paid if the price of the crop on the date specified in the contract is below the threshold price specified in the contract.
Currently, farmers can choose from fixed insurance that does not exactly meet their needs. The idea of this platform is to allow every farmer to make an insurance claim by entering which territory is insured and exactly for what parameters and values (too warm, too humid, drought, etc.).
An online platform that allows farmers to make insurance claims by entering: which land they insure against, what they insure for (temperature does not fall below certain degrees, temperature does not exceed certain degrees, average humidity is below/above a certain value for time interval) as well as what amount they would like to receive if the adverse conditions listed. Then the insurers have the opportunity to offer for what amount they can conclude an insurance contract. As a final step, the farmer selects an offer and concludes a contract with the insurer (which is recorded in the blockchain).
The client used this prototype in a series of presentations with governments in Russia, Georgia, Armenia, and Belgium. The prototype was successful and was praised by the government representatives and now they are expecting full implementation.
We had heard of them through news outlets and they were recommended by experts with knowledge of the subject matter. Given the unique position of the World Bank, our preference was to hire a company in a developing country which would have been able to execute and was also cost-effective.
They had great execution and excellent customer service.
– Georgi Panterov, Economist
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