Italy is considering applying blockchain technology to insurance, mainly with regard to storm damage. These so-called smart parametric policies could pay people automatically if they are insured against storm damage, delayed flights and lost luggage.
The blockchain project will use smart contracts and distributed ledger technology (DLT), and is being developed by Catholic University and Reply in the Insurance Blockchain Sandbox; a controlled environment in which insurers can test new services and technologies.
The project is supported by insurer Aon as well as Italian insurance companies such as Mediolanum Assicurazioni, Cargeas Assicurazioni, Nobis Filo Diretto and Reale Mutua. Three Italian banks, Banca Mediolanum, Banca Popolare di Sondrio and UBI Banca, have also invested in the project.
The aim of the project is to test how digitization and blockchain technology can improve the process of these smart policies . The automatic and transparent operation should also lead to faster and cheaper transactions.
Recently it emerged that Italy, together with Sweden and the Czech Republic, will lead the European Blockchain Partnership in the coming year.
Last month, San Marino, the small country in the north of Italy, announced that it wants to become a global hub for blockchain technology.