Leveraging IoT and Blockchain Technology
Smart contracts are self-executing agreements that do not require an intermediary . They are a set of programmed instructions that perform specific actions when predetermined conditions are met . By removing the need for filling out forms , initiating claims , and calling hotlines , smart contracts simplify and hasten insurance processes while helping to prevent the fraud and errors that plague current insurance systems .
One benefit of smart contracts is that they are highly adaptable . Contracts can be designed for any number of specific scenarios : accidents , collisions , fire , seizure , warranties , recall , and weather relocation services . As aforementioned , disaster situations often occur unexpectedly and within shorter timeframes than insurance companies are able to comply . Smart contracts have the potential to minimize risks to life , limb , and property by allowing instant , secure transfer of all records and relevant data between the insured and the insurer .
In the case of risk management for nautical vessels , smart contracts could guide any transaction between a given boat and other parties — from marinas to captains to insurance companies . Selfexecuting insurance procedures , for example , could work from a decentralized weather datacapturing solution . Voyages will be protected as real-time event data is logged through the onboard IoT oracles or sensors . From there , that data can be interpreted and acted upon by smart contracts , allowing for predictive adjustments of location or status based on these weather conditions . In this sense , if foul weather approaches one dock , a vessel can issue its own alert and , through smart contracts , secure a captain to move it to safer ground — without the owner needing to step foot outside of their own home .
If properly utilized , today ’ s IoT and blockchain technologies could alleviate the pitfalls of existing emergency management systems . Through a combination of edge computing devices that capture data closer to the source ( i . e . the oracles onboard Ahoy vessels or assets ), and smart contracts that automate processes that formerly ate up time and money Ahoy has the potential to create a more efficient system for insurance claims , dramatically reduce costs and friction in risk management processes , and minimize environmental and property damage — even when faced with Category-4 storms .
When registering with Ahoy , boaters can supply their Insurance Policy Number and other appropriate information regarding their policy . From there , should an incident occur involving the Ahoy asset , smart contracts can make dealing with insurance far more efficient . By providing insurers with all relevant data they need for a payout , automatically triggered by the smart contracts already in-place , both insurers and boaters can move faster and get the matter settled .
However , Ahoy also opens up even more opportunities in situations that can hopefully cut down on the need for damage claims in the first place . What if instead of buying replacement boats and parts , insurance companies paid for the services of a licensed captain to move the
82 April 2023