AXA Launches New Blockchain based Insurance Product For Airline Passengers

Ireland based insurance company, AXA, has announced the launch of an insurance product that is based on Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology. The solution automates Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term of compensation for late flights for air passengers.

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The product is called 'Fizzy' and is currently ongoing trial runs for the passengers between the Charles de Gaulle airport in Paris and the United States. The company plans to expand its usage internationally and partner up with major international airlines.

Though there have been several doubts raised over the bitcoin industry, there has never been a question about the effectiveness of the technology beneath it, which is the blockchain.

AXA's Fizzy stores the details of the flight and the data about flight delays in a smart contract within the blockchain. Compensation is processed directly into the bank account of the passenger if the flight is late by more than 2 hours.

This makes the whole process very easy and efficient as the compensation does not depend on the user filing a claim and the insurance experts verifying it. The compensation amount is also known in advance.

The entire process is automated which also reduces the possibility of errors. The company hopes that this would improve the trust that the clients have in the company.

Also, as all the details are stored on the blockchain, the information is highly secure and ensures traceability and can be retrieved at any point of time.

Commenting on the matter, the Director of R&D at AXA GIE, Laurent Benichou, explains: "Through Fizzy, the independent smart contract, rather than the insurer, triggers consumer indemnification. I believe this is a new element of insurance architecture that will become mainstream in future offers”