AXA tests a blockchain-based flight insurance product

Fizzy might be an example of a sub-genre of parametric insurance, whereby it does not compensate for the loss, but a triggering event leads to the issuance of a pre-established pay-out.

Parametric insurance has the capacity to streamline risk management, lower costs and increase customer satisfaction due to the elimination of  uncertainty. Even though, it is traditionally limited to large-company catastrophe bonds, however, blockchain technology enables parametric policies to “go small," cover a broader range of eventualities and reach a wider spectrum of audience.

A blockchain platform eliminates the need to submit paperwork and to request pay-out authorization, and it ensures that the issuer will honor the trigger as the embedded conditions are unchangeable.