Concept

BEACON is a blockchain-fueled toolbox that couples leading Earth Observation technology with weather intelligence to deliver consumable, actionable insights for the agri-insurance industry. BEACON services enable the Agricultural Insurance sector to alleviate the effect of weather uncertainty when estimating risk of Agricultural Insurance products, reduce the number of on-site visits for claim verification, reduce operational and administrative costs for monitoring of insured indexes and contract handling, and design more accurate and personalized contracts.

Underwriting

Underwriting procedures as currently performed - with premiums calculations based on risks deriving from claims made in the past – do not work in the case of new products, populations and markets and more importantly within a continuously changing climate conditions. The significant impact of climate change and weather uncertainty on crop production causes even greater uncertainty about the levels of risk involved in Agricultural Insurance provision and makes it necessary for an insurance company to charge high premiums and to build up substantial capital reserves. BEACON Earth Observation functions empower Agricultural Insurance underwriting procedures and premium calculations, by providing access to, and analyzing Earth Observation, climate and localized meteorological data. Using satellite-based information, coupled with weather intelligence and high-resolution weather forecast it will enable a more accurate damage assessment and claims adjustment along with a potential fraud detection.

Contract Monitoring

Farmers compliance to specific conditions stipulated in the insurance contract, needs to be monitored by Insurance companies. This is mainly performed with on-site/field audits multiple times within the contract duration, entailing high administrative costs for insurance companies. BEACON leveraging the use of Earth Observation data, offers the opportunity to Agricultural Insurance companies to remotely check, in near real time and verify customer compliance to the contractual obligations (pay premium in time, report changes in planned acreage, compliance with suggested mitigation measures etc.) supporting them to reduce the administrative cost of on-site/filed visits. BEACON Earth Observation functions empower Agricultural Insurance underwriting procedures and premium calculations, by providing access to, and analyzing Earth Observation, climate and localized meteorological data. Using satellite-based information, coupled with weather intelligence and high-resolution weather forecast it will enable a more accurate damage assessment and claims adjustment along with a potential fraud detection.

 

Damage Assessment

Agricultural Insurance companies face high operational and administrative costs for claim verification and monitoring, damage/loss, and control of fraud events, driven by the remoteness and dispersion of agricultural production/crop fields. The occurring indirect costs increase the company operational cost resulting to higher premiums in the market. BEACON using Earth Observation imagery offers an alternative possibility to verify and more accurately assess whether a claimant has been affected by an insured risk, enabling also the investigation of suspicious claims. This possibility emerges from the well-established potential of remote sensing to detect damage on vegetation and crops by drought, fire, hail, frost and pests and diseases. BEACON Earth Observation functions empower Agricultural Insurance underwriting procedures and premium calculations, by providing access to, and analyzing Earth Observation, climate and localized meteorological data. Using satellite-based information, coupled with weather intelligence and high-resolution weather forecast it will enable a more accurate damage assessment and claims adjustment along with a potential fraud detection.

Smart Contracts

Powered by Blockchain technology, BEACON uses Smart Contracts, enabling automatic payouts of damages to insured parties. BEACON Earth Observation functions empower Agricultural Insurance underwriting procedures and premium calculations, by providing access to, and analyzing Earth Observation, climate and localized meteorological data. Using satellite-based information, coupled with weather intelligence and high-resolution weather forecast it will enable a more accurate damage assessment and claims adjustment along with a potential fraud detection.

 

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