AXA uses Ethereum blockchain to create flight insurance products and plans to use Ethereum as a claim payment method

On September 14, French insurance giant AXA launched a new flight delay insurance product. It is worth noting that the Ethereum public chain is used for the storage and processing of its expenditures.

The product, named Fizzy, is reportedly a "smart insurance" tool that passengers can use to make claims if their flights are delayed for two hours or more. The product uses smart contracts, which automatically execute a piece of code once certain conditions are met.

According to AXA representative Jean-Baptiste Mounier, the Ethereum public blockchain played two key roles: first, it maintained accessible records of the insurance contract itself through smart contracts, and second, it served as a trigger mechanism that automatically paid compensation to customers if the flight was delayed for more than two hours.

Mounier told reporters in an email:

“Smart contracts determine whether we should compensate the policyholder and are responsible for triggering the payment of the system. Using smart contracts to trigger claims will increase the trust between the insurance company and the policyholder.”

Ultimately, AXA is positioning the launch of this product as a way to create more transparency into the insurance process.

“Putting customers first is a clear goal of AXA. By removing insurance exclusions and using Ethereum smart contracts to trigger compensation, it can increase the level of trust customers have in AXA.”

Looking ahead, AXA plans to add more applications to the Fizzy product using the Ethereum blockchain.

Currently, insurance payouts through Fizzy can be made using government-issued currencies, but AXA has said that in the future, they also hope to use Ethereum for payments.

“In the future, we want to use Ethereum for payments and claims, which will fully guarantee that the claims recognized by the code can happen (insurance companies will also not be able to cheat consumers, which is something some customers fear),” Mounier explained.