During his session at D1Conf, Michiel Berende introduced participants to the inclusive insurance and unveil the opportunities blockchain offers to the sector. Michiel focused on how agricultural index insurance solutions based on blockchain can help small-scale farmers in emerging economies to be protected against the risks they are facing nowadays. These slides are courtesy of Michiel Berende, Etherisc

1. Etherisc
Michiel Berende
Inclusive Insurance Lead
D1Conf
Oct 29, 2018
Prague, Czech Republic

2. Etherisc Mission Statement
Etherisc develops a decentralized insurance protocol to collectively
build insurance products.
A common infrastructure, product templates and insurance license-
as-a-service make a platform that allows anyone to design, launch
and distribute their own insurance products.
As a result, independent workers and risk capital providers earn fair
share of created value, regardless of age, wealth, or personal
connections.

3. “
The term “inclusive insurance” or “microinsurance”
typically refers to insurance services offered primarily
to clients with low income and limited access to
mainstream insurance services and other means of
effectively coping with risk.

4. Coverage ratios
in emerging
markets
Source:http://worldmapofmicroinsurance.org/

5. People have not yet been able to purchase a microinsurance product

6. Why is blockchain
interesting for
inclusive insurance?
Let’s try to explain this

7. Smart contracts well suited to simplicity of many microinsurance
risks:
Easy to underwrite and adjust;
Small premiums and claim amounts;
High volume transactions.
Addresses unique challenges like moral hazard.
Coverage ratios in emerging markets are very low
Some interesting features of
inclusive insurance?

8. Other external
data
Ground
sensors, local
weather data,
crop yield
report data,
historical crop
data
Smart
contract
ensures
minimum
capital ratios
are
maintained
Satellite data
Information on
drought
conditions
Central Reserve
(multisignature wallet)
Blockchain based risk pool
Payer
or
Remitter?
Weather Index Blockchain based risk pool
Premium Payments Claim Payments (in tokens)
Smart contract
receive incoming payment and
issues policy
Smart contract
Monitors
incoming data
Smart contract
issue claim payments based on
triggers
Suppliers & Producers

9. “
Why not provide
AFFORDABLE RISK PROTECTION
to small farmers and let the top of the
VALUE CHAIN
SUPPORT it?

10. Insurance
Contract
Seeds
Fertilizer
Agro-chemicals
….
Premium
Risk bearing
Capital
Supplier Producer Retailer Consumer
Insurer
Risks of
DroughtFlood
✘
Smart
Value Chain

11. “
We are doing this
in Sri Lanka!

12. “
Any questions ?
Thanks!
You may contact me at
michiel@etherisc.com