FEMA to Consider Use of BlockChain To Speed Up Disaster Insurance Payouts
The US Federal Emergency Management Agency (FEMA) should explore blockchain based solutions to smoothen disaster insurance payments, says its National Advisory Council (NAC).
In its draft November report that was released on Monday, NAC advised the FEMA Administrator to explore blockchain technology to smoothen and enhance the speed of insurance premium payouts to disaster victims.
In order to achieve this, the FEMA administrator, Peter Gaynor, has been advised to roll out a blockchain-based program that will register properties and land comprising all the data and details that are necessary in filing a disaster assistance claim.
According to the report, such a blockchain-based solution can help in simplifying and enhancing the speed at which the government pays out communities in times of natural disasters.
The draft report states that during various disasters like Hurricanes Maria and Harvey, the victims are likely to lose their documents which are crucial when filing for an insurance claim. The report explains that policy documents, as well as land ownership certificates and personal identification details, are prone to destruction or loss during a natural disaster.
However, the report explains that a blockchain-based program can help in avoiding such loses. Such a program has the potential of being adopted by different players that are involved in disaster management and payments leading to speedy claim payouts.
The NAC report also suggests that FEMA should team up with insurance companies in launching the program in order to enhance payment of disaster dividend and harm’s way payments to the victims of disasters.
NAC says that decentralization is an advantage as records or data will be stored in various locations if blockchain is used. The storage of data and information in different servers will help in neutralizing any threat posed by a solitary server that could be affected by flood in times of storms damaging the entire data.
The recommendations by NAC comes just months after the logistics unit in the Department of Defense held a meeting to explore whether blockchain technology could have offered speedy and positive results during the Hurricane Maria disaster in Puerto Rico, CoinDesk reports.