Aon plc AON along with Oxfam and Etherisc recently announced the introduction of and farmer admission in a blockchain-based platform. This service offers micro-insurance to smallholder paddy field farmers in Sri Lanka, whose crops are at risk due to weather conditions.
Obstacles such as dearth of affordable and trustworthy insurance products and the lack of knowhow of insurance claims have so long prevented farmers from seeking basic insurance aid. However, this new solution steers clear of all such hindrances because of its automated facility, which transforms and simplifies the claims process. Moreover, this service lowers administration expenses and fetches a higher portion of premiums used for paying claims and immediate, fully trusted payouts.
This initiative with companies like Oxfam and Etherisc allows Aon to significantly increase its odds to positively impact people and small business houses across the world. The move is in line with its strategy to empower economic prospect and human potential.
Notably, Oxfam with its knowledge of climate-smart agriculture and association with farmers is the perfect partner for this blockchain solution. Oxfam along with the combination of Aon’s competence in reinsurance and global insights plus Etherisc's expertise in applying blockchain technology to insurance would surely help a large portion of the Sri Lanka economy.
Aon has made diligent efforts to expand via its inorganic growth plans. Its acquisitions are mainly aimed at burgeoning its health and benefits business, flood insurance solutions and risk and insurance solutions operations. Strategic collaborations also boost Aon’s capacity, making it one of the largest insurance brokers. These transactions and alliances are likely to accelerate long-term growth for Aon.
Shares of this Zacks Rank #4 (Sell) have surged 40.7% in a year’s time, outperforming its industry’s growth of 34.4%.
Stocks to Consider
Investors interested in the insurance industry might look into some better-ranked stocks like eHealth, Inc. EHTH, American International Group, Inc. AIG and Erie Indemnity Company ERIE, each carrying a Zacks Rank#2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
eHealth offers private health insurance exchange services to individuals, families and small businesses in the United States and China. It delivered a beat in three of the last four quarters, the average positive surprise being 127.73%.
American International Group provides insurance products in North America and around the globe. In the trailing four quarters, the stock pulled off average positive surprise of 15.61%.
Erie Indemnity works as a managing attorney-in-fact for subscribers at the Erie Insurance Exchange in the United States. It pulled off average four-quarter positive surprise of 8.97%.
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