Otonomi is the first-ever decentralized platform to bring fully automated insurance contracts to the marine and cargo industry. Otonomi’s mission is to bring transparency to the historically opaque insurance industry through practical, real-world applications of blockchain technology.
Data integrity is critically important to Otonomi’s insurance products as they depend on reliable data to determine whether an insurance claim must be filed or a claim paid out.
Chainlink oracles help ensure that Otonomi’s parametric insurance contracts are executed with reference to highly reliable data that’s accessible on-chain.
Otonomi’s parametric insurance solutions reduce contract settlement times, decrease costs, improve risk-weighted performance metrics, and create a more transparent and reliable insurance experience.
The ongoing supply chain crisis has highlighted fragility within both the logistics sector and the insurance industry that underwrites its day-to-day operations. Shipping delays and poorly managed supply chain risks have led to slow-downs that ripple through the entire economy.
Otonomi recognized the potential for hybrid smart contract technology to protect freight forwarders and shippers against delays and supply chain disruptions, enabling them to quickly overcome the inevitable challenges that arise in the global transport industry. Data integrity is critical to these solutions, as the data determines whether an insurance claim must be filed or a claim payout must be executed according to preset smart contract parameters. What Otonomi needed was a highly reliable, decentralized, and on-chain data solution that could enable anyone to verify the integrity of the data triggering their smart contracts.
“On-chain data is mission-critical for decentralized parametric insurance protocols. Moreover, as it determines whether insurance contracts are paid out, it was critical for us to find the highest-integrity oracle solution available.”
Co-founder and CEO, Otonomi
As blockchains are deterministic and cannot natively access off-chain data, Otonomi requires a battle-tested oracle network that can reliably and flexibly deliver high-quality data on-chain to be used by its protocol. Already helping secure leading DeFi protocols responsible for tens of billions of dollars in smart contract value, Chainlink has a proven history of reliably delivering data of all types to blockchains, and is widely used by applications that require off-chain data or computation services.
The Otonomi team chose to integrate Chainlink Data Feeds to help trigger its parametric insurance policies with highly reliable logistics data. When the Chainlink Network delivers an event trigger, such as a shipping delay, the corresponding insurance smart contracts are automatically executed.
“Chainlink Data Feeds provide our protocol with highly reliable logistics data that’s accessible on-chain, helping enable our protocol to reliably trigger and execute insurance policies.”
Co-founder and CEO, Otonomi
After integrating Chainlink Data Feeds, Otonomi is now able to deliver a superior user experience that mitigates human error and prevents fraudulent transactions at a fraction of the cost of traditional insurance policies. And unlike traditional insurance contracts, which take an average of 45 days to settle a claim, Otonomi’s insurance products adjudicate and settle claims in just 45 minutes. Furthermore, having access to highly reliable and real-time data helps enable Otonomi to more accurately determine delays and calculate the most accurate pricing for its clients based on real-time market fluctuations. Additionally, Chainlink oracles make it straightforward for Otonomi to add new data points in the future, helping enable Otonomi to seamlessly expand its parametric insurance solutions across new business verticals.