AXA has launched a blockchain-based product to offer insurance. Named Fizzy, it offers automatic and direct late flight compensation for air passengers. The product is being trialed for air passengers between Paris Charles de Gaulle airport and the United States in either direction.
When a customer buys flight delay insurance on the fizzy platform, the details are all recorded in Ehereum blockchain. The flight is tracked in real time through global air traffic databases. If the flight is more than two hours late, Fizzy automatically pays compensation into the customer’s bank account. The customer need not claim payment, but is triggered immediately automatically. This is an example of parametric insurance where the parameter is flight statistics, that trigger the performance of a contract.
Laurent Benichou director of R&D at AXA GIE says: “Through Fizzy, the independent smart contract, rather than the insurer, triggers consumer indemnification. I believe this is a new element of insurance architecture that will become mainstream in future offers.”