AXA has become the trailblazer in the industry by applying the blockchain technology to develop insurance products. The new product, Fizzy, uses the d
AXA has become the trailblazer in the industry by applying the blockchain technology to develop insurance products. The new product, Fizzy, uses the distributed Ethereum public blockchain network to automatically make payments to air travelers whenever their flights are delayed.
Fizzy is a parametric insurance product against delayed flights and is fully automated and 100% secure. It uses smart contracts to compensate passengers by making direct, automated reimbursements if there is a delay exceeding two hours.
Using the Ethereum public blockchain network, AXA is able to create smart contracts at the point the customer purchases Fizzy to trigger the automated payouts. The smart contracts are connected to the databases of flight making it possible to monitor the flight data on a real-time basis. If there is a delay of two hours and above, the smart contracts are executed and the computer program automatically triggers the payout.
This is a significant development in the industry since the payout decisions are blockchain-enabled and are totally independent of the control by AXA. The payout amount and conditions necessary for payout are pre-agreed and configured in an unchangeable software application which automatically executes when the conditions are right.
Speaking about the product, the R&D director Laurent Benichou noted that the automatic triggering of indemnification is the future of insurance. Further, he noted that the product uptake has been good and the customers are impressed by its simplicity and the automatic compensation.
The product which is currently on test for flights between Charles de Gaulle Airport and the United States is set to launch in the UK in 2018. Plans are also in place to extend its usage to more airlines and airports. Additionally, the product will be accessible through direct consumer channels, brokers, and travel agents.
Information available in the product website shows that the compensations are made in fiat currencies i.e. those issued by national governments such as USD, Euro, GBP etc. There is no information on the possibility of compensation using cryptocurrencies such as Ether or Bitcoin.