Infinite Reserves Agricultural Insurance Blockchain Solution with Satellites (Technical Video)
Channel: MJ the Fellow Actuary
Date: 2018-06-13

In this video we discuss a radical idea. Can we use the blockchain to create a decentralised insurance system with an infinite reserve?

The main benefits are:
1. No need for a large capital investment to be made upfront
2. Probability of Ruin tends to zero
3. Premiums can be cheaper

The idea works with crop insurance because we can use satellite images to validate the claims. The potential for fraud makes this unsuitable for other forms of insurance.

Farmers in developing nations don't have access to traditional insurance because they are in remote areas and the costs associated with insuring them is quite large. (sending brokers to the farm, validating claims, etc)

However a combination of satellite images and blockchain can make this product accessible for these farmers.

All comments are welcomed. I'd like to encourage constructive feedback. If you think the idea is bad, please give a reason. Comments like: "You are dumb" are not as valuable as comments like: "You are dumb because you forgot XYZ"

For more information on Satellites and Agricultural Insurance, please see this link: http://www.actuarialpost.co.uk/article/satellites-in-agricultural-insurance-5038.htm

In a Nutshell: Mint cryptotokens every time the satellite detects a failure in crops.

Thumbnail image from https://www.freepik.com/free-vector/idyllic-farm-landscape_851615.htm