Insurance Based on Waqf and Blockchain Technology: A Strong Social Impact & Efficiency

Abstract

We surveyed to measure the satisfaction of policyholders in Morocco, and the results clearly show that the majority of customers do not appreciate the current services. They suffer from the ambiguity of contracts, and delays in reimbursement and do not feel the real impact of insurance in society. To solve this problem, we propose an innovative insurance based on blockchain and waqf. We suggest in this paper, to use smart contracts to create an efficient and automatic process in the collection of premiums and reimbursement of policyholders. The goal of this paper is to build insurance that reflects the true meaning of solidarity through Waqf while integrating transparency and speed through Fintech. This insurance model is supposed to be resilient in times of crisis, have a strong social impact, and be attractive to customers. Many advantages of the proposed model are discussed in the paper. In addition, the suggested insurance model will be represented through simulations on the NetLogo platform. We carry out the analysis in normal times and evaluate the behavior of policyholders in choosing a specific type of insurance, depending on some decision-making tools. We also analyze the impact of insurance during a time of crisis, as a particular example, the crisis experienced during the coronavirus pandemic. The simulations aim to evaluate the model in different situations and prove its efficiency.