Today Brooklyn-based Otonomi, the blockchain parametric insurance startup said it had signed a deal with Greenlight Innovation Syndicate 3456, a Lloyds underwriter to provide insurance cover. That was the final step it needed to launch. Otonomi provides automated cargo delay insurance starting with air cargo. Last year it raised $3.4 million in funding which included Greenlight Re Innovations as one of its backers.
The key with parametric insurance is to remove the need to process claims manually, radically reducing the cost of insurance and how long it takes to pay out claims. With Otonomi, that’s expected to fall from 45 days to 45 minutes. The primary piece of information needed to process a claim is the flight data that’s available automatically.
Otonomi’s is not the first flight delay insurance, but it has quite a different approach from previous attempts. For example in 2017 Axa launched fizzy, which used the public Ethereum blockchain to offer automated payouts to consumer travelers for flight delays. But the travel and airline industry wasn’t that interested, and it didn’t get traction.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
