Blockchain in Insurance Market Set for Rapid Expansion
The global blockchain in insurance market, valued at $1.4 billion in 2023, is projected to surge to $15 billion by 2031. This represents a robust compound annual growth rate (CAGR) of 34.5% over the forecast period from 2024 to 2031, according to a recent report by DataM Intelligence. The report provides an in-depth look at market trends, growth prospects, and emerging challenges within the industry.
Streamlining Insurance with Blockchain
Blockchain technology offers significant advantages for the insurance sector. By utilizing decentralized and tamper-proof digital ledgers, insurers can improve several key processes. These include streamlining claims processing, reducing instances of fraud, automating underwriting through smart contracts, and building greater trust with customers. Furthermore, blockchain enables the secure sharing of data among stakeholders, which can enhance risk assessment and operational efficiency while minimizing administrative costs.
Key Players and Developments
The report identifies several key players in the blockchain in insurance market, including Mapfre, Max Life Insurance, Auxesis Group, KM Business Information US, Inc, Bitfury, IBM, SAP Oracle, MetLife, and Consensys.
Recent developments highlight the growing adoption of blockchain in the industry. For example, in January 2024, Nayms launched the first institutional tokenized (re)insurance marketplace on Base, an Ethereum layer-2 solution. This offers investors easier access to yield-generating reinsurance opportunities within a tokenized asset class. Another notable development is the October 2023 launch of Crypto Shield Pro by Breach Insurance, a Boston-based insurer. This institutional-grade crypto insurance solution includes a free active wallet monitoring service, enhancing security for digital asset holders.
Market Growth Forecast
The market is anticipated to experience considerable growth between 2024 and 2031. With key players actively implementing new strategies, this expansion is expected to accelerate throughout the forecast period.
Research Methodology
The research employed both primary and secondary data sources to provide a comprehensive analysis of the global blockchain in insurance market. The study considered a range of factors influencing the industry, including governmental regulations, market conditions, competitive dynamics, historical data, technological advancements, and potential challenges.
Market Segmentation and Regional Analysis
The report segments the blockchain in the insurance market by component (solution, services), type (private, public blockchain), enterprise size (large enterprises, small and medium-sized enterprises), and application (GRC management, death and claims management, identity management and fraud detection, payments, and others).
Regional analysis includes North America (U.S., Canada, Mexico), Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands, and the rest of Europe), Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia and the rest of Asia Pacific), South America (Colombia, Brazil, Argentina, and the rest of South America), and the Middle East and Africa (Saudi Arabia, U.A.E., South Africa, and the rest of Middle East & Africa). The regional breakdown allows for the identification of specific market trends and growth opportunities unique to each geographic location.
