Winners of the Chainlink Virtual Hackathon, Lukas Sexton, Luis Ramírez, Ahmad S, and Mike Robinson, developed a decentralized parametric insurance product for marine shipping using Chainlink oracles and smart contracts, aimed at addressing financial risks from fluctuating water levels in shipping channels due to climate change. Their proof-of-concept uses a Chainlink External Adapter to connect a marine shipping water level API to automate insurance claims when water levels reach predetermined thresholds, providing immediate payouts without third-party arbitration. By utilizing secure and trusted data through Chainlink, the team’s approach illustrates how smart contracts can automate and decentralize insurance processes, offering a scalable solution for the global marine insurance industry. The project is designed to mitigate economic losses from seaway closures, exemplifying the potential of blockchain technology in creating efficient and consumer-centric insurance solutions. The team envisions expanding this model to cover significant seaways across North America and further developing the product to include dynamic pricing based on ship and cargo data, while also seeking additional data sources for increased coverage.