OTONOMI is pleased to announce that we have integrated market-leading decentralized oracle solution Chainlink to bring real-world data to our B2B SaaS parametric insurance solution. OTONOMI will use Chainlink’s ability to aggregate data from premium data providers and deliver it to our platform in a highly available and tamper-proof manner to automate insurance claims processes. The result of the integration will be a reduction in contract settlement times, decreases in operating costs, and the creation of a more transparent and reliable insurance experience for all.
Currently, Chainlink is securely delivering flight data and arrival/landing times from multiple high-quality data sources directly to our air cargo insurance smart contracts. Since the Chainlink Network is decentralized, a mistaken value from one data provider does not affect the data consumed by our platform. Additionally, Chainlink’s solution makes it very easy to add new data points in the future, empowering us to quickly expand vertically within markets (i.e., luggage delay insurance, ticket price insurance), horizontally into new markets (i.e., sea cargo, device warranties), and security wise within existing solutions (i.e., more data, more oracle nodes).
EMPOWERING OTONOMI PARAMETRIC INSURANCE WITH CHAINLINK ORACLES
OTONOMI is a B2B SaaS platform for insurance carriers. By reducing claim resolution times from 45 days to 45 minutes and costs from $350 to $5, we help our clients — the insurance carriers/reinsurers — be more efficient and generate more net revenues while improving customer experience.
Our parametric intelligence uses dozens of millions of data points to:
(i) generate advanced pricing,
(ii) offer risk-mitigating tools,
(iii) automate workflow
(iv) and money transfer along the insurance supply chain.
By harnessing the power of blockchain, we can deliver a great user experience at a fraction of the cost of a traditional insurance policy. We can achieve this due to three key properties that blockchain gives us: data-driven execution of policies, legal and economic terms encoded in self-operating smart contracts, and automated claims and payments.
As a parametric insurance solution, data integrity is critically important to determining whether an insurance claim must be filed (the first notice of loss) and executing claim payouts according to preset smart contract parameters. Thus, it is imperative that the data which triggers and executes claims is (a) accurate, (b) reliable, and © verifiable. Chainlink’s decentralized oracle network is integral to our platform as it provides data that possesses all three qualities, allowing our smart contracts to execute automatically with extremely high confidence.
Programmatic derivation of truth using consensus mechanisms is the key to our parametric policies, as the insurance industry will digitize its process in the next 5–10 years. Chainlink brings a decentralized infrastructure that unlocks secure, anonymous, and dynamic event triggering mechanics that service our smart contracts’ business logic. Some of the notable features of Chainlink’s decentralized oracle network that set it apart from other solutions include:
- High-Quality Data — Chainlink oracles can manage API keys and account logins, allowing them to aggregate and deliver premium data from highly available and financially incentivized APIs.
- Reliable Nodes — Chainlink Data Feeds are secured by a large collection of independent, security-reviewed, and Sybil-resistant oracle nodes run by leading enterprises, data providers, and DevOps teams who have a strong on-chain history of performance even during extreme network congestion.
- Decentralized Infrastructure — Chainlink Data Feeds are decentralized at the data source, oracle node, and oracle network levels, eliminating any central point of failure in the sourcing and delivery of external data to OTONOMI’s platform.
- Transparent Performance — Chainlink Data Feeds can be monitored by anyone in real-time, using existing data analytic tools such as market.link and reputation.link, allowing users to verify the data triggering their contract.
FUTURE DEVELOPMENTS IN DECENTRALIZED ORACLES FOR INSURANCE
Air transport and cargo insurance are not the end of the road for our ambitions. We plan to use Chainlink for powering marine shipping, ground shipping, and device warranties via IoT sensor data and GPS data, particularly with Chainlink building novel privacy-preserving oracle technologies like DECO and Town Crier.
Ocean cargo is a massive business worth trillions of dollars a year that spans opportunities globally — significant delays or disruptions en-route cost businesses billions of dollars every year. With OTONOMI, a company handling time-sensitive shipments can get transit delay coverage that pays out immediately.
Coverage isn’t limited to delays either. We plan to integrate vertically and create a flywheel effect in our product expansion. OTONOMI can support coverage for anything IoT sensors can detect and transmit. Temperature levels of a shipment (e.g., temperature-sensitive vaccines), property damages and loss of containers, air quality levels of an environment (e.g., smoke in a rental property), and water damage in a device (e.g., phone or tablet).
Chainlink’s decentralized oracle network will allow us to adapt our platform for a wide range of use cases, both as a seamless access point to any API and any current or future blockchain environment, all with minimal technical development required to deploy new products.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
OTONOMI is a parametric insurance solution for carriers. We are transforming the air cargo insurance process into a fast, transparent, and cost-efficient experience for both the policyholders and insurers. Powered by our proprietary technologies in data-activated triggers, smart contracts, and integrated digital wallets, we reduce claim resolution times from 45 days to 45 minutes, lowering admin costs by 90%.