The ongoing global supply chain crisis has put meat, cars, washing machines – even Girl Scout Cookies – in a pinch. Last year’s Suez Canal disaster publicized the billions of dollars shipping delays cost businesses each year and how little recourse traditional insurance policies offer.
OTONOMI is a blockchain-enabled platform using Chainlink Data Feeds to deliver parametric on-chain air cargo insurance policies that are independently triggered and executed at a fraction of the time and cost.
This week, the Otonomi team expanded its integration of Chainlink oracles to launch the first-ever smart contracts-powered air freight insurance index. As an official risk contributor to the Nasdaq Global Index Data Services platform, the index is also widely available through Nasdaq’s third-party distribution network.
Team Otonomi, led by CEO Yann Barbarroux, celebrated this milestone in mainstream smart contract adoption in Times Square, where the OTONOMI logo was featured on the Nasdaq MarketSite tower.
“Having our logo there on such an iconic building and international landmark location in our favorite city was a great honor for the team,” Barbarroux told Chainlink Today.
The OTO-USA-1 index is a continuation of Otonomi’s mission to bring transparency to the historically opaque insurance industry with practical real-world applications of blockchain technology.
Barbarroux said the “massive foray” of deploying smart contract technology to support freight insurance couldn’t have come to fruition at a better time. “We truly are proud of pushing our parametric cargo solution in 2022, especially considering the aggressive supply chain crisis we are going through,” he said.
Chainlink oracles supply high-quality, real-world OAG flight data to OTO-USA-1, which replicates a blended basket of blockchain-based air cargo delay insurance policies to provide a comprehensive snapshot of the supply chain sector’s real-time performance.
“Chainlink’s oracle solution is an essential building block in our air freight platform automation,” Barbarroux said. “Having the ability to rely on decentralized, secure, and encrypted API services using Chainlink oracles is mission-critical in connecting real assets with our smart contract policies.”
He believes Otonomi’s blockchain-based index will build a bridge between DeFi users and the traditional insurance market to create unique decentralized insurance models.
“A skyrocketing DeFi sector frankly is what’s making this possible now,” he said.
Otonomi’s near-term roadmap involves expanding its air freight delay and interruption product into other industries, such as marine and ground transport, using Chainlink oracles.
Said Barbarroux, “Team Otonomi is psyched to continue working with Chainlink to push innovative solutions in the insurance and logistics markets in 2022 and beyond.”