Decentralized Reinsurance: funding blockchain-based parametric bushfire insurance

Mass reinsuring of blockchain-based parametric insurance contracts has so far been unsuccessful due to a lack of protocols promoting securitisation. We introduce a proof of concept reinsurance smart contract system, based on traditional catastrophe bonds, to hedge and securitise bushfire risk on the Australian continent. The system combines the benefits of approximating human-assessed loss through a risk index with the draw of traditional indemnity insurance's ability to hedge very specific risks. At this stage the platform faces significant challenges due to the immaturity of relevant oracles.