ERGO Insurance and PolicyPal have agreed to roll out a travel insurance product based on the PolicyPal Network’s decentralised blockchain technology.
The product will provide automated payouts whenever the insured’s flight is delayed. Smart contracts will automatically trigger a claim payout and deposit the money in the insured’s bank account, based on the travel insurance policy’s terms and the conditions of the flight delay. There will be no need for the insured to file a claim, the firms said. ERGO provides the underwriting for travel insurance, while PolicyPal provides the technology that automatically handles claims and payouts.
According to ERGO and PolicyPal, they came up with this solution due to the massive increase of flights brought about by globalisation. However, the current infrastructure for flight delay claims has yet to catch up with the higher number of flights.
The insurer said that smart contract technology makes travel insurance more efficient, strengthens the trust between insurer and insured, and decreases cases of fraud.
“We are excited to work with PolicyPal on flight delay insurance which is an innovative, customer-focused solution that offers our customers a more efficient management of flight delay claims under their travel insurance policies,” said Karl-Heinz Jung, chief executive of ERGO Insurance Pte. Ltd. “The move is part of our initiative to bring efficiencies and convenience to our customers via innovation.”
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