Blockchain in the Insurance Market Size
| Study Period: | 2019-2027 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | North America |
| CAGR: | 63.4 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Blockchain in the Insurance Market Analysis
The Blockchain Market in the insurance industry is expected to register a healthy CAGR of over 63.4% during the forecast period. Blockchain technology is assisting the insurance business in drastically changing operations, offering a wide range of advantages like lower costs, improved customer experiences, increased productivity, increased transparency, and more. This will create massive opportunities for the fintech sector as well as for insurance companies that are willing to embrace the change.
- Some of the new ways the insurance industry is starting to use blockchain technology are P&C Claims Settlement, the Internet of Things (IoT), index-based livestock insurance programs, catastrophe swaps and bonds, market investments, financial auditing and reporting, flight insurance, automated underwriting and claims settlement with the help of smart contracts, parametric insurance, high-value assets insurance, reinsurance, and medical claims processing.
- Companies incur huge losses because of the daily false claims and scams in the industry. A blockchain system is also hard to scale up because of the consensus-based validation procedures, the constant replications, and the ever-growing amount of data that is stored and can't be changed.
- Over the past ten years, technology has advanced rapidly and permeated every aspect of life. Technology is also familiar in the global vehicle insurance market. The revolutionary blockchain technology has changed the way that motor insurance operates. With blockchain technology, motor insurance businesses can now cryptographically encrypt all insurance-related data on a secure and reliable record-keeping platform. So automotive sales would drive blockchain technology in automotive insurance firms. For instance, according to Scotiabank, worldwide car sales grew to around 66.7 million automobiles last year, up from around 63.8 million units in 2020.
Insurers and their associations worldwide have indicated that most policyholders still need to acquire insurance coverage that will respond to the business interruption losses resulting from the COVID-19 pandemic business closures. But, during the pandemic, the vendors experienced a surge in demand in the blockchain market. Moreover, with the new plans adopted by many organizations, like digital business practices and the usage of emails on personal servers, and with the rapid surge in internet penetration and increased usage of mobile devices throughout the globe, people are becoming more inclined to adopt blockchain technology.
Blockchain in the Insurance Industry Segmentation
Blockchain technology is a robust database mechanism that enables the transparent sharing of information within a corporate network. We can build an unalterable database for monitoring payments, orders, accounts, and other transactions using blockchain technology. The system includes mechanisms for preventing unauthorized transaction entry and ensuring consistency in the shared view of these transactions.
Within insurance, the claims and finance functions are high-value areas where blockchain could be beneficial, especially when you look at processes that need ongoing reconciliation with external parties. Insurers and customers waste a lot of time verifying their documents and identities. This can be reduced with a blockchain platform that can talk to other blockchain platforms to verify the identity of the user. The market includes various standalone services in the insurance sector, such as smart contracts, identity management, and fraud detection, death and claims management, and governance, risk, and compliance management.
The blockchain market in the insurance industry is segmented by deployment (on-premise, cloud-based), type (public, private), application (GRC management, smart contracts, financial management, identity management & fraud detection, death and claims management, and other applications), geography (North America (US, Canada), Europe (UK, Germany, France, and Rest of Europe), Asia-Pacific (China, Japan, Singapore, Australia, and Rest of Asia-Pacific), and rest of the world.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Deployment | |
| On-premise | |
| Cloud Based |
| By Type | |
| Public | |
| Private |
| By Application | |
| GRC (Governance, Risk and Compliance) Management | |
| Smart Contract | |
| Financial Management (Payments) | |
| Identity Management & Fraud Detection | |
| Death and Claims Management | |
| Other Applications |
| Geography | |||||||
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| Rest of the World |
Blockchain in the Insurance Market Trends
This section covers the major market trends shaping the Blockchain in the Insurance Market according to our research experts:
Smart Contract is Expected to Hold a Significant Market Share
- Smart contracts powered by a blockchain could provide customers and insurers with the means to manage claims in a transparent, responsive, and irrefutable manner where claims handling could become more efficient and streamlined, resulting in an improved customer experience.
- Contracts and claims could be recorded on a blockchain and validated by the network, ensuring only valid claims are paid. Smart contracts would also enforce the claims, for instance, by triggering payments automatically only when certain conditions are met. Smart contracts, for example, can be programmed to accept telematics device feeds and automatically raise insurance claims and trigger pay-outs in the event of an accident.They can also recommend trusted service stations in the vicinity and call for medical assistance if necessary.
- Smart contracts possess the capabilities to automate several processes that otherwise require manual intervention. In addition, data's immutability increases reliability and helps make faster and more accurate decisions.
For instance, in November this year, ZetaChain (ZETA), a California-based public L1 blockchain and omnichannel smart contract platform, launched an enhanced testnet. This strong network upgrade includes support for cross-chain communications as well as Omnichain smart contracts. This is the public blockchain, where smart contracts may access and control assets, data, and liquidity on any chain.
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Asia-Pacific is Expected to be the Fastest Growing Region
- Blockchain technology is getting a lot of attention in the financial sector, which includes banking, financial services, and insurance.
- As insurers are expected to increasingly leverage the growing application of IoT for data gathering across emerging economies, the blockchain-based implementation could greatly increase the overall process's efficiency and enable insurers to capture sensory information securely through a tamper-proof method. For instance, ICICI Lombard uses AI in healthcare insurance-related claims to identify fraud. Any transactions validated and stamped are hard to change and can be verified using AI for real-time settlement.
For instance, in May this year, the Blockchain-based Service Network (BSN) presented itself as a "one-stop shop" for deploying blockchain applications in the cloud, which might otherwise be expensive and time-consuming. It intends to connect several blockchains to assist enterprises in deploying the technology.
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Blockchain in the Insurance Industry Overview
The blockchain market in the insurance industry is highly concentrated and consolidated with a few significant players, such as IBM Corporation, Microsoft, AWS, Oracle, SAP, etc. Regarding market share, some of the major players currently dominate the market. However, with the advancement of blockchain technologies and cloud deployment, new players are increasing their market presence, thereby expanding their business footprint across emerging economies.
In May 2022, Superscript, a U.K. startup and Lloyd's of London insurance market broker, launched a dedicated product called "Daylight" for crypto businesses. The Daylight Insurance offering for crypto firms begins with technology liability and cyber insurance, which protect against everything from ransomware attacks to unintentional copyright infringement.
In January 2022, the open-source, decentralized insurance protocol and ecosystem Etherisc launched a blockchain-backed insurance application that can autonomously issue policies and execute payouts for travel delays and cancellations. Payments are processed through the blockchain payments program Gnosis Chain (formerly xDai Chain), with an initial payment option of the U.S. dollar-backed USD Coin.
Blockchain in the Insurance Market Leaders
Microsoft Corporation
IBM Corporation
Amazon Web Services, Inc.
Oracle Corporation
SAP SE
*Disclaimer: Major Players sorted in no particular order
Blockchain in the Insurance Market News
- September 2022: EY and Guardtime present Insurwave, the world's first blockchain-enabled marine platform. This platform integrates and secures the streams of disparate data sources involved in insuring shipments worldwide.
- September 2022: XA Group, based in Dubai, introduced Addenda, a blockchain-based digital platform enabling insurers to reconcile vehicle recovery receivables. All motor insurers in the Middle East and North Africa (MENA) region can access the platform for free.
- July 2022: IMA Financial Group, one of the largest employee-owned private insurance brokers, makes the first transaction using blockchain by launching Web3Labs, which had been issued a certificate of insurance (COI) on the blockchain. The COI, completed on behalf of client Engiven, the first B2B cryptocurrency donation software servicing nonprofit organizations, was transacted as a non-fungible token (NFT) through Web3 Labs, IMA's research and development facility in Decentraland.
Blockchain in the Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Demand of Automation Across the BFSI Sector
4.2.2 Increasing Need for Reducing the Total Cost of Ownership
4.3 Market Restraints
4.3.1 Security Vulnerability of Transaction Across the Insurance Platform using Blockchain Technology
4.3.2 Lack of Awareness about Blockchain in the Industry Professionals
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Technology Snapshot
5. MARKET SEGMENTATION
5.1 By Deployment
5.1.1 On-premise
5.1.2 Cloud Based
5.2 By Type
5.2.1 Public
5.2.2 Private
5.3 By Application
5.3.1 GRC (Governance, Risk and Compliance) Management
5.3.2 Smart Contract
5.3.3 Financial Management (Payments)
5.3.4 Identity Management & Fraud Detection
5.3.5 Death and Claims Management
5.3.6 Other Applications
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 United Kingdom
5.4.2.2 Germany
5.4.2.3 France
5.4.2.4 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 Singapore
5.4.3.4 Australia
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Microsoft Corporation
6.1.2 IBM Corporation
6.1.3 Amazon Web Services, Inc.
6.1.4 Oracle Corporation
6.1.5 SAP SE
6.1.6 Chainthat Limited
6.1.7 Auxesis Group
6.1.8 GuardTime AS
6.1.9 Symbiont.io Inc.
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. INVESTMENT ANALYSIS
Blockchain in the Insurance Market Research FAQs
What is the study period of this market?
The Blockchain Market in the Insurance Industry market is studied from 2019 - 2027.
What is the growth rate of Blockchain Market in the Insurance Industry?
The Blockchain Market in the Insurance Industry is growing at a CAGR of 63.4% over the next 5 years.
Which region has highest growth rate in Blockchain Market in the Insurance Industry?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Blockchain Market in the Insurance Industry?
North America holds highest share in 2021.
Who are the key players in Blockchain Market in the Insurance Industry?
Microsoft Corporation, IBM Corporation, Amazon Web Services, Inc., Oracle Corporation, SAP SE are the major companies operating in Blockchain Market in the Insurance Industry.
Blockchain Market in the Insurance Industry Report
Statistics for the 2023 Blockchain in the Insurance Industry market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Blockchain in the Insurance Industry analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
