Inclusive Insurance? Businesses See Blockchain As Change-Enabler

The concept of microinsurance is getting a shot in the arm from new technologies, not least among them blockchain. A term coined at the turn of the millennium, "microinsurance" is often defined as coverage for people on very low incomes. However, the concept has run up against many of the problems faced by microfinance generally. In theory, it's a great idea, but the practicalities of distribution and operational costs make it unsustainable in many cases. The most commonly cited use case is coverage to protect small farmers in developing countries from abject weather conditions. From an insurer's perspective, this can involve writing policies or overseeing a claims-handling process for a single-hectare farm (not much bigger than a soccer field) in the African bush. The associated costs far outweigh the meager premium these types of customers can afford. Or, to put it in layman's terms, the juice isn't worth the squeeze,…

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