Hybrid IoT-DLT architecture for parametric insurance in variable connectivity environments

Abstract

The digital transformation of the insurance sector is advancing through hybrid architectures that integrate distributed ledgers, the Internet of Things (IoT), and artificial intelligence (AI). This paper proposes a hybrid IoT–DLT architecture for parametric insurance systems operating in environments with variable connectivity. The architecture is designed to ensure data verifiability, operational resilience, and regulatory compliance with the General Data Protection Regulation (GDPR) and the Digital Operational Resilience Act (DORA). The approach is validated through a maritime cold-chain monitoring use case for fishing fleets, based on onboard IoT sensors and smart contracts. Simulation results show that the proposed multi-sensor consensus mechanism enables accurate detection of thermal breaches while significantly reducing the number of blockchain transactions by reserving on-chain registration for critical events only. The proposed approach supports distributed, auditable, and operational insurance systems even under intermittent connectivity conditions.