AI-Driven Platform for Automated, Transparent, and Event-Based Insurance Payouts

Overview:

Traditional insurance models rely heavily on proof-based claims—lengthy documentation, manual assessments, and human adjudication—which slows down payout processes, increases administrative costs, and leads to disputes.

Parametric insurance, on the other hand, offers pre-agreed payouts triggered automatically when measurable events (like weather anomalies, natural disasters, or travel delays) occur. WalkingTree’s Parametric Insurance Solution leverages AI, real-time data streams, and smart contracts to turn this concept into a scalable, transparent, and automated platform—ideal for insurers looking to offer next-gen, trust-first insurance products.

This is insurance that pays out when it should—without friction.

| High-Impact Insurance Use Cases for Parametric Insurance

1. Weather-Based Crop Insurance (AgriTech-Enabled)

Farmers suffer devastating losses due to droughts, floods, and temperature extremes, yet traditional insurance often pays late—if at all.

Parametric insurance powered by WalkingTree enables:

• Real-time integration with weather APIs and satellite data

• Smart triggers (e.g., rainfall < 50mm over 10 days) that initiate claims automatically

• Direct payouts to policyholders, without the need for documentation or claim filing

Impact:

• Zero-latency claims, boosting trust and adoption among farmers

• Lower operational costs by eliminating manual assessments

• Scalable models for governments and agri-insurers to support large populations

2. Cargo & Transit Delay Coverage

Logistics and marine insurers often cover cargo spoilage or damage from delays, but proving these events takes time and manual reconciliation.

Using our parametric solution:

• IoT and GPS trackers provide real-time location and delay updates

• If cargo arrival exceeds threshold (e.g., 24 hours past ETA), payouts are auto-initiated

• Business owners and shippers receive immediate reimbursement, improving supply chain resilience

Result:

• Insurers become enablers of trust in global trade

• Reduces disputes and backlogs related to cargo claims

• Attracts corporate clients with “set-it-and-forget-it” coverage models

3. Hospitalization-Linked Health Benefits

Supplemental health insurance providers can offer coverage that pays out automatically for specific health events—such as ICU admissions or prolonged hospitalization—without paperwork.

Our AI platform can:

• Integrate with hospital admission feeds or national health data sources

• Detect qualifying events (e.g., >3-day stay, critical illness code)

• Auto-disburse benefit amount to the insured without the need for claims submission

Benefit:

• Delight customers with instant, no-touch payouts

• Reduce cost per claim by avoiding documentation validation

• Create product innovation in micro-insurance and embedded health coverage

4. Travel Disruption Coverage

Traditional travel insurance requires claimants to provide boarding passes, receipts, and delay confirmations. Parametric solutions replace all of this.

With real-time airport and flight data integrations:

• Delays or cancellations are automatically detected

• If flight is delayed >2 hours, system auto-triggers fixed compensation

• Payouts are pushed to the customer’s digital wallet or bank account

Impact:

• Offers instant gratification to travelers

• Drastically improves claim satisfaction and brand loyalty

• Opens new revenue channels for embedded travel insurance partners

5. Energy & Utility Risk Cover

Weather-based risks like wind speed, heatwaves, or power grid failures can disrupt renewable energy producers.

Parametric insurance can:

• Monitor environmental data via smart sensors or APIs

• Trigger risk covers for energy yield drops or equipment outages

• Allow insurers to build niche B2B coverages for green energy clients

| How It Works: Platform Capabilities

• Event Monitoring Layer: Connects to real-time data sources (weather APIs, satellite feeds, IoT sensors, hospital systems, aviation data)
• Trigger Rules Engine: Smart contracts or rules define payout conditions
• Payout Execution Engine: Connects with banking APIs or wallets to automate disbursement
• Audit & Compliance Module: Logs every event, decision, and payout action for transparency

| Business Impact for Insurers

| Why This Is Exciting for the Insurance Industry

• Faster payouts. Lower costs. Happier customers.

• Creates opportunities to innovate beyond traditional indemnity models

• Makes insurance more predictable, transparent, and accessible

• Empowers insurers to become real-time financial responders, not just payers

Parametric insurance isn’t just a new product model—it’s a paradigm shift, and WalkingTree’s AI-powered accelerator gives insurers a first-mover advantage in launching fully digital, customer-centric offerings.