Ireland based insurance company, AXA, has announced the launch of an insurance product that is based on blockchain technology. The solution automates payments of compensation for late flights for air passengers.
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”