Blockchain-based parametric insurance

Parametric insurance coverages when some specific events occur. Smart contracts are deployed in Blockchain to be triggered when those events take place, to transact tokens from the insurer to the client under the terms and conditions agreed by both parties and coded in the smart contract.

As an example, an airline covers their clients with insurance when a flight is delayed more than one hour by paying 30% of the cost of the flight ticket. When a delay occurs, is recorded in the system, and transmitted to the Blockchain through an oracle. Then the smart contract sends tokens from the airline account to the client.

Although parametric insurance makes sense and is useful, DIMCredits goes beyond this use case providing insurance in a wider functionality and more number of use cases.