Global Charity Oxfam Will Use Ethereum to Deliver Microinsurance

Oxfam, the non-profit group focused on alleviating global poverty, has teamed up with blockchain startup Etherisc to help bring affordable insurance to paddy rice farmers in Sri Lanka.

The tie-up between Etherisc, which applies the ethereum public blockchain to the world of insurance, and Oxfam in Sri Lanka was announced Tuesday at CoinDesk's first "Blockchain for Social Good" event.

Using a blockchain to program in the conditions under which a payout will automatically be made, removes much of the distribution and operational costs which have made microinsurance unsustainable in many cases.

"We are tapping into the existing distribution channels that Oxfam has, and looking at how blockchain can lower costs and increase efficiencies and make it easier for many more farmers to get access to this product."

Bojan Kolundzija, the country director for Oxfam in Sri Lanka, said the charity has been working for several years to establish a solid base to support farmers in the region.

"We are excited to work towards the expansion of this innovative program with the help of blockchain technology and focused insurance industry experience from our partners Etherisc," he said.

Automating insurance coverage on a blockchain is the first phase, which will make it much easier for insurance companies to reach large groups of small-scale farmers, said Berende.

The second phase of the project will seek to leverage the trust-minimizing, transparent attributes of blockchains to reconfigure the agricultural value chain, allowing large food producers, for example, to play a supporting role.

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