Parametric Insurance at the Heart of Smart Contracts: a Revolution for Insurance Companies

In the field of insurance, the substitution of Smart Contracts for traditional contracts offers obvious advantages: transparency of benefits and premiums, speed of compensation, reduction of management costs, security of operations. However, insurance companies face three types of challenges for their implementation: constructing the covered event and verifying the attractiveness of the insured for this mode of coverage in an automated framework, finding and managing the underlying data essential to the Smart Contract, and organizing a profound change in the management of their activity and organization. Insurers will find it difficult not to apply this technology, at least to parts of their portfolio of contracts.