Ensuro Leverages USDC to Enhance Insurance Accessibility for Underserved Populations
Timothy Morano Aug 26, 2024 15:17
Ensuro, using USDC, is revolutionizing insurance by making it more inclusive and capital efficient, especially for underserved populations.
Mainstream adoption of blockchain technology continues to grow worldwide. From global enterprises to individual developers, more people are building new applications that can transform the movement, storage, and exchange of value. Marco Mirabella and Guillermo Narvaja are at the forefront of this evolution, particularly in the insurance sector. They are the co-founders of Ensuro, an innovative insurance provider that uses smart contracts to make insurance both more capital efficient and more inclusive, according to circle.com.
Ensuro’s Innovative Approach to Insurance
Mirabella and Narvaja, drawn to insurance after long careers in the tech scenes of Latin America and Europe, have utilized blockchain to disrupt traditional insurance models. In April 2024, Ensuro won Circle's Unlocking Impact pitch competition in Washington, DC, earning 100,000 USDC and mentorship from Circle leaders. The next Unlocking Impact pitch competitions will take place in New York this September and in October during the World Bank Annual Meeting in Washington, DC.
Blockchain's Role in Insurance
Blockchain technology, particularly smart contracts, offers immense potential for the insurance industry. These contracts can automate the movement of value globally and at scale while managing risk in a highly efficient manner. This innovation allows for programmatic risk pricing and faster, cheaper payouts, making it economically feasible to write insurance policies in smaller amounts than traditionally possible. Consequently, this extends insurance to people who have typically lacked access.
USDC’s Critical Role
Ensuro uses USDC for all its policies and payouts, citing its transparency and 1:1 redeemability for dollars. USDC acts as a bridge between blockchain and the rest of the world, enabling quicker and more cost-effective transactions. Unlike traditional payment methods that can take days, USDC allows policyholders to receive payouts in minutes.
Ensuro's Global Impact
Ensuro has underwritten more than 170,000 policies across seven programs covering travel, weather, cyber, and cargo risks. The company is expanding its crop insurance program in Kenya, benefiting farmers by providing protection against climate risks. This also diversifies the risks, making these policies more attractive to investors. The use of blockchain and digital dollars offers a tremendous opportunity to reach billions of people who are underserved by traditional finance and insurance.
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