Research Results from Khalifa University of Science and Technology Update Understanding of Crop Insurance (Blockchain-Based Approach for Crop Index Insurance in Agricultural Supply Chain): Agriculture – Crop Insurance

NewsRx Policy and Law Daily

2023 NOV 15 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- New study results on crop insurance have been published. According to news originating from Abu Dhabi, United Arab Emirates, by NewsRx correspondents, research stated, “Crop insurance serves as a crucial risk mitigation strategy for farmers facing uncertainties stemming from unpredictable weather conditions and vulnerabilities within the agricultural production process. Unfortunately, the prevailing traditional methods of crop insurance are laden with complexities, high costs, and, more critically, a lack of trust, which has deterred farmers from safeguarding their crops.”

Funders for this research include Khalifa University of Science And Technology, Research Center For Digital Supply Chain And Operations Management.

The news reporters obtained a quote from the research from Khalifa University of Science and Technology: “Addressing these challenges, we present an innovative blockchain-based crop index insurance solution aimed at delivering multiple benefits. Our solution leverages blockchain technology to ensure unprecedented transparency throughout the insurance ecosystem. Every transaction and data exchange among farmers, insurers, and weather data providers is recorded on an immutable ledger, fostering trust, accountability, and confidence among all stakeholders. Moreover, blockchain’s inherent immutability and the use of smart contracts mitigate the risk of fraudulent activities in the crop insurance domain. Claims are processed autonomously, significantly reducing the possibility of fraudulent claims and enhancing the integrity of the system. One of the primary concerns of farmers, delayed claim settlements, is addressed by our solution. Smart contracts enable automated and prompt claim processing, ensuring that farmers receive timely payouts. Furthermore, our solution substantially reduces costs by eliminating intermediaries and streamlining administrative processes. This affordability democratizes crop insurance, making it accessible to a broader spectrum of farmers, including those in low-income countries. Our comprehensive approach integrates advanced algorithms for secure information sharing and interaction among stakeholders. We have rigorously tested the smart contract code under diverse scenarios using the Remix IDE, with the code’s availability on GitHub as a reference. Security vulnerabilities have been meticulously assessed and addressed.”

According to the news editors, the research concluded: “Thus, our paper presents an effective, low-cost, and trustworthy solution utilizing blockchain-based smart contracts to facilitate timely crop insurance for farmers. By enhancing transparency, reducing fraud, expediting claim processing, and increasing affordability, our solution aims to revolutionize crop insurance, making it more accessible and reliable for farmers worldwide.”

For more information on this research see: Blockchain-Based Approach for Crop Index Insurance in Agricultural Supply Chain. IEEE Access, 2023,11():118660-118675. (IEEE Access - http://ieeexplore.ieee.org/servlet/opac?punumber=6287639). The publisher for IEEE Access is IEEE.

A free version of this journal article is available at https://doi.org/10.1109/ACCESS.2023.3327286.

Our news journalists report that more information may be obtained by contacting Ilhaam A. Omar, Department of Industrial and Systems Engineering, Khalifa University of Science and Technology, Abu Dhabi, United Arab Emirates. Additional authors for this research include Raja Jayaraman, Khaled Salah, Haya R. Hasan, Jiju Antony, Mohammed Omar.