Avata and Sleap.io to launch NFT-linked travel insurance
The partners will develop the travel insurance product using the Camino Network blockchain
Insurtech firm Avata has formed a strategic partnership with blockchain-based hotel booking platform Sleap.io, to launch a new travel insurance product linked to a non-fungible token (NFT).
The product is expected to go on sale in the coming months, distributed exclusively via Sleap.io.
The two companies will employ the Camino Network, a blockchain designed to serve the needs of the travel industry, to build the product. Sleap.io already uses this blockchain to support its existing hotel booking services.
What are blockchains and NFTs?
A blockchain is an encrypted system that records transactions – in particular using cryptocurrency and NFTs – through a network of computers linked via a network.
One advantage of such a system over something more centralised is a reduced chance of data loss and better data privacy.
An NFT is a blockchain-based unique digital token. While the most popular and widely recognised use of the technology is to sell ‘unique’ digital art – such as the notorious ‘Bored Ape’ images – their more useful application is as an infallible certificate of ownership and authenticity.
In the insurance sector, this application can be used to attach policies to policyholders, allowing insurance firms to offer greater flexibility and security to customers.
It follows an announcement by Chain4Travel – the facilitator of the Camino blockchain –to distribute travel insurance products via the platform, in partnership with insurance provider InterMundial, in early 2023.