AXA enters flight delay market with blockchain-backed cover

French insurer AXA has launched fully-automated flight delay cover underpinned by blockchain technology.

The new product, called Fizzy, automatically compensates customers if their flight is delayed by more than two hours.

Fizzy is in the testing phase and currently in use for flights between Paris Charles de Gaulle airport and the US, in either direction.

The company plans to expand the product internationally in the coming months and develop partnershuips with airline companies, travel agencies and airports.

AXA is the latest entrant into the flight delay market. Rival insurer Chubb announced last week that it had partnered with Swiss Re to offer an automated flight delay compensation product.

AXA’s new product uses Ethereum blockchain technology, developed by Swiss non-profit organisation Ethereum Foundation.

Blockchain is a tamper-proof technology originally developed to record transactions using the Bitcoin cyptocurrency, but is being adapted for wider use.

When the customer buys flight delay insurance, the purchase is recorded on the blockchain. The contract is connected to global air traffic databases, and compensates customers automatically if it detects a delay of more than two hours.