Etherisc is a blockchain-based, open-source platform that automates agricultural index insurance, making it more transparent, cheaper and faster.
Around 270-500 million smallholder farmers lack agricultural insurance in developing countries, leaving them vulnerable to climate-related crop and income loss. Inaccessibility, affordability issues and distrust in traditional insurers hinder their access to reliable climate risk insurance solutions.
To respond to this challenge, Etherisc has created an open-source, blockchain-based technology platform which allows end-to-end automation of parametric insurance products. The platform produces a single source of real-time claims data while removing the need for each stakeholder to separately verify weather data before claims are paid out. This automation will enable claims to be paid faster while cutting costs. Leveraging blockchain's real-time transaction tracking also enhances transparent monitoring for all stakeholders. Currently, Etherisc’s policyholders consist of 51 percent women and 49 percent men.
In 2023, Etherisc built a single source of real-time, trusted data for 5,500 smallholder farmers covered by climate risk insurance in Burkina Faso. As of 6 November 2023, 66 percent of policyholders were expected to receive a claim at an average individual amount of CFA7,300 (~US$12). Most payouts would be disbursed to millet farmers in the east region.
WFP is able to view and use the developed data dashboard to generate timely insights. So far, 38,500 people have been reached.
