Global insurance company AXA has launched one of the first ever commercial applications of self-executing smart contract technology, aimed at the consumer insurance market. The smart insurance contract, which is based on the Ethereum blockchain and covers flight delays, is called Fizzy and is openly available on flights between the US and Paris, France.
Fizzy is an automated, digitised and consumer-friendly form of parametric insurance – where, instead of offering coverage that needs to be triggered by claims for any losses incurred in an event, payouts are automatically triggered by pre-agreed thresholds.
For instance, a two-hour flight delay will result in the automatic payout of €100 to consumers who have purchased the product at €5.
