# Etherisc to Host First Blockchain-Based Hurricane Insurance Policy in Puerto Rico
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-04-26
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Blockchain Hurricane Insurance for Low-Income Families in
Meta Description: Etherisc announces groundbreaking blockchain policy protecting low-income households in Puerto Rico from storm damage, cutting out traditional insurers.
URL: https://financedigest.com/etherisc-to-host-first-blockchain-based-hurricane-insurance-policy-in-puerto-ricohtml

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_First-of-its-kind policy uses blockchain to protect property and earnings of low-income households from major storm damage_

Etherisc, the global, decentralized insurance platform for collectively building insurance products, has today announced its support for the first blockchain-enabled insurance product to combat catastrophic weather events in Puerto Rico. The hurricane insurance policy on Etherisc’s blockchain platform will help to alleviate the strain of dealing with traditional insurance companies after many small businesses and low-income households hit hard by Hurricane Maria experienced delayed claims and refusals to pay out policies. Developed in just 90 days by local Ethereum engineers, the [policy](https://www.financedigest.com/what-type-of-life-insurance-policy-is-right-for-me.html "What Type of Life Insurance Policy Is Right For Me?") will enable one of the first real-world use cases of decentralized insurance and demonstrates how Etherisc-based insurance templates can be customized to manage and mitigate risks for communities around the world.

Etherisc Co-Founder Renat Khasanshyn said: “Six months after Hurricane Maria, many Puerto Rican residents and local [business owners](https://www.financedigest.com/carbon-zero-what-it-means-for-business-owners.html "Carbon Zero: What it Means for Business Owners") are still waiting for their insurance claims to be paid. Many have been forced to wait months for claim assessments or payouts. Residents are left without roofs over their homes, without money for repairs, and without a [safety net](https://www.financedigest.com/increase-in-investments-in-building-refurbishment-and-new-construction-activities-to-propel-demand-of-construction-safety-net-market-fact-mr-report.html "Increase in Investments in Building Refurbishment and New Construction Activities to Propel Demand of Construction Safety Net Market: Fact.MR Report") for income loss. As a result, many people have left the island.”

Etherisc’s decentralized insurance protocol removes the need for large, traditional insurance companies to be involved, using a library of automated smart contracts to record transactions in a secure and transparent manner. The technology takes the middleman out of the insurance equation, dramatically reducing the cost of household and [small business](https://www.financedigest.com/best-small-business-loans-speaks-to-fundbox.html "Best Small Business Loans Speaks to Fundbox") policies. In addition, the protocol automates [premium calculations and claims payouts so policies are faster and cheaper than traditional insurance](https://www.financedigest.com/no-exam-term-life-insurance-premiums-explained.html "No-Exam Term Life Insurance Premiums Explained").

Etherisc Co-Founder Stephan Karpischek said: “Only half of all Puerto Rican households are covered by policies that protect against wind damage. This is particularly alarming when we [consider how often the country](https://www.financedigest.com/eu-countries-consider-lower-gas-price-cap-documents.html "EU countries consider lower gas price cap – documents") is battered by catastrophic storms. Such events have far-reaching socioeconomic consequences, with Puerto Rico faced with the devastating loss of an estimated [470,000](https://centropr.hunter.cuny.edu/research/data-center/research-briefs/estimates-post-hurricane-maria-exodus-puerto-rico) residents as a direct result of Hurricane Maria alone.

“When we were approached by two developers in the country to create a customized [policy that would meet](https://www.financedigest.com/opec-abandons-oil-policy-meeting-after-saudi-uae-clash.html "OPEC+ abandons oil policy meeting after Saudi-UAE clash") the needs of Puerto Rican residents, we saw an incredible opportunity to help the islanders and showcase just what Etherisc and decentralized insurance can do. By using Etherisc-provided common infrastructure, open-source product templates, and insurance license-as-a-service, they are able to build a tailored policy for Puerto Ricans that was both [affordable and accessible](https://www.financedigest.com/hair-care-shouldnt-break-the-bank-transplant-surgery-should-be-accessible-and-affordable-for-all-men.html "Hair-Care Shouldn’t Break The Bank – Transplant Surgery Should Be Accessible and Affordable For All Men"), without the huge premiums, delays, and frustrations of traditional insurance. This is exactly what we envisioned for Etherisc – an open protocol for entrepreneurs to collectively build and bring to market truly innovative [insurance](https://www.financedigest.com/insurance-products-growing-in-importance-in-2021-and-beyond.html "Insurance products growing in importance in 2021 and beyond") products.”

The hurricane [insurance is also designed as a “parametric insurance,” meaning it uses a set of predetermined weather parameters to trigger a fixed payout](https://www.financedigest.com/credit-suisse-bond-wipe-out-will-not-trigger-credit-insurance-payout.html "Credit Suisse bond wipe-out will not trigger credit insurance payout") immediately. This type of policy also lowers premium costs, helping to make [insurance more affordable for low income families](https://www.financedigest.com/types-of-insurance-for-yourself-and-your-family.html "Types Of Insurance For Yourself And Your Family") and small businesses.

“It’s inspiring to see the Etherisc platform already being used in a [way that will have life-changing impacts](https://www.financedigest.com/four-ways-impact-acts-as-a-source-of-value-for-startups-and-investors.html "Four ways impact acts as a source of value for startups and investors") for people who traditionally struggle with brick and mortar institutions, or simply cannot afford to protect themselves. The hurricane insurance is the first use case that embodies our belief in what insurance should achieve – helping people solve real problems and [manage risks](https://www.financedigest.com/extended-reality-applications-in-risk-management.html "Extended Reality Applications in Risk Management") in their communities,” added Co-Founder Stephan Karpischek.

The development of the Etherisc Platform is supported by the Decentralized Insurance Foundation in Switzerland. To register for the upcoming DIP Token Generating Event, organized by the Decentralized Insurance Foundation, visitetherisc.com/registration.


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