Blockchain Insurance Market Size (2024 - 2029)

Blockchain Insurance Market Analysis

The Blockchain Insurance Market size is estimated at USD 0.66 billion in 2024, and is expected to reach USD 3.77 billion by 2029, growing at a CAGR of 41.32% during the forecast period (2024-2029).

Blockchain technology is helping the insurance business in drastically changing operations, offering a diverse range of advantages like lower costs, improved customer experiences, increased productivity, increased transparency, and more.

• Insurance fraud can be eradicated by insurers using blockchain insurance claims. Because of the immutable property of blockchain, moving insurance claims into a shared ledger among insurance companies that cannot be altered will eventually eliminate fraud. According to the FBI, it is estimated that non-health insurance fraud costs the economy more than USD 40 billion annually. As a result of higher premiums, insurance fraud costs the typical American family between USD 400 and USD 700 annually. The increase in the number of insurance frauds is expected to drive the deployment of blockchain in the insurance industry.
• The insurance market is integral to the global economy, covering personal and business risks. According to the International Monetary Fund, the market size of non-life insurance in the Gulf Cooperation Council countries was predicted to increase from USD 22.7 billion in 2021 to USD 26.5 billion in 2026. In comparison, the market size of life insurance in the GCC was anticipated to grow from USD 3.8 billion in 2021 to USD 4.6 billion in 2026 and is expected to have lucrative opportunities for growth. 
• Blockchain technology can speed up banking and lending processes while lowering counterparty risk, issuance, and settlement times. It enables real-time financial verification, authenticated documentation, and KYC/AML data, lowering operational risks. Real-time payments against assets are made possible by blockchain technology, which results in significant cost reductions. The usage of blockchain technology for payment applications is one of the current trends. 
• To transform payments, market players are developing advanced blockchain technologies. In the insurance industry, using blockchain for payments helps lower risks while enhancing efficiency and transparency in payment processes. Several institutions worldwide have developed blockchain-based payment networks, including Banco Masventas (Argentina), MUFG, and Taipei Fubon Commercial Bank.
• The vendors in the blockchain market in the insurance industry are moderately consolidated with an array of different application purposes. However, major vendors such as Dell, Amazon Web Services Inc., Oracle Corporation, and many more are highly preferred blockchain product/solution providers across various insurance applications. To meet the various demands of the customers, blockchain firms are providing new solutions. 
• Additionally, it is introducing a second product called crypto-native prisoners, a new captive offering from Nayms. Large corporations that establish a subsidiary to provide insurance to group firms frequently utilize captive insurance. Large blockchain protocols now routinely reserve a treasury fund to be utilized in the event of a hack or other problem in the crypto realm.
• However, the applications of blockchain technology are still in their infancy across several industry verticals. Even if the insurance sector has demonstrated a favorable trend in adopting technology, there is still more that needs to be done to raise awareness of distributed ledger technology (DLT) and its many potential applications in the insurance sector. One of the biggest problems is the lack of knowledge, which might restrict the growth of the studied market.

Blockchain 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 (United States, Canada), Europe (United Kingdom, 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) for all the above segments.