Blockchain in Insurance Market Research Report – Global Forecast till 2024
Blockchain insurance’s market growth in the coming years is inevitable by giving the fact that early adoption of the technology for it has a considerable boost. Market Research Future reveals that the global blockchain insurance market is set to demonstrate a steady valuation of USD 1.42 Billion by 2024 by attaining 69.72% CAGR during the forecast period 2019–2024, in its detailed study.
Market Drivers & Trends
The market for the blockchain insurance market is proliferating, mainly due to the early adoption of blockchain technology in the world of finance and investments. At present, the financial service providers are using the technology to cater the best of the services to the clients. With this the increasing investment by the prominent players in the research & development of blockchain-based application development is also fostering the market in a sophisticated way.
The digital technology has also boomed within ten years of the decade and has formed an efficient platform for digital transactions with the increasing number of fraudulent insurance claims that exist. Therefore, this is yet another essential factor that is enabling the blockchain insurance market to open more opportunities for its expansion during the forecast period.
On the flip side, the factor such as lack of standard protocols and limited technical knowledge among the end-users can restrain the market growth over its growth period.
The segmental analysis of the global blockchain in the insurance market has been done among the elements type, service provider, organization size, application, and sector.
In terms of type, the blockchain in the insurance market includes public blockchain, private blockchain, and consortium or federated blockchain. Among these, at present, public blockchain is leading the market as blocks in this are verified one after another and cannot be modified, which makes it a highly secured blockchain type. Though, public blockchain is an open network that can be accessed easily and read it. In the end, consortium blockchain is estimated to observe a high growth rate in the forthcoming years as it authorizes the blocks based on pre-defined rules made by a federation of blockchain, which mounts the security level of the blocks.
In terms of service providers, the market includes application & solution providers, middleware service providers, and infrastructure & protocols providers. Among these, the segment of infrastructure & protocols providers is leading the market owing to the mounting demand from banks, finance, and insurance service providers for advanced and secured infrastructure. Whereas, application and solution providers are estimated to record the highest CAGR during the assessment period owing to the rising adoption of cloud-based services and secured network gateways for money transactions by end-users.
In terms of organization size, the blockchain in the insurance market consists of SMEs and large enterprises. Here, the segments of large enterprises have contributed the highest by revenue generation for the market owing to high investments in developing skilled expertise for blockchain technology. While SMEs are probable to perceive a high growth rate in the years to come.
In terms of application, the market includes fraud detection & risk prevention, property & casualty insurance, smart contracts, GRC management, and reinsurance. Out of these, the intelligent contracts segment is leading the market as it enhances the security of information by benefitting information blocks with low-cost verification and by reducing the risk of frauds and security breaches.
In terms of sector, the market includes life insurance and health insurance, title insurance, and auto insurance, and others. Among these, life insurance and the health insurance sector are leading the market.
Regionally, the global blockchain insurance market has been studied under the key regions of North America, Asia-Pacific, Europe, and the rest of the world.
Blockchain in the insurance market is currently leading in the region of North America owing to the high adoption rate of blockchain, mainly by the finance sector. The increasing skilled expertise for cryptocurrency in the region is also pushing the market to grow at a steady pace. In addition to it, rising initiatives by insurance agencies in educating insurers about the benefits of blockchain technology usage are fueling the market growth of blockchain in insurance in the region. The US is the highest contributing to generating the highest revenue for the market.
Asia-Pacific is also witnessed to be the fastest-growing market for blockchain in insurance. Insurance companies in developed countries of Asia-Pacific, such as Japan, Singapore, and South Korea, are investing a substantial amount in research & development of blockchain technology. Among these, China is leading the market. The Chinese insurance companies such as Huatai Insurance, China Property & Casualty Reinsurance Company (CPCR), and Fun in Funding, in 2018, introduced blockchain-enabled medical insurance service, Hongfu e-life. On the other hand, the market in India is also estimated to perceive high growth rate in the approaching years due to the development in advanced technologies and mounting initiatives by Indian insurer consortium to augment their expertise in blockchain in concern with improving insurance services and claims management systems.
Guardtime, Safeshare Global, Factom, Auxesis Group, AWS, SAP SE, Bitpay, Circle, Bitfury, Digital Asset Holdings, Symbiont, Recordskeeper, Oracle Inc., Earthport, IBM Corporation, Cambridge Blockchain, Chainthat Limited, Blockcypher, Everledger, Consensys, Microsoft Corporation, Applied Blockchain, Algorythmix, BTL Group, Ixledger are some of the prominent players who are contributing highly in the global blockchain in insurance market growth.
Blockchain in Insurance Market: by Sector (Health Insurance, Life Insurance, Title Insurance), by Application (Smart Contracts, Property & Casualty Insurance, GRC Management, Reinsurance, Fraud Detection & Risk Prevention), by Type (Consortium Or Federated Blockchain, Public Blockchain and Private Blockchain), by Organization Size (SMEs and Large Enterprises), by Service Providers (Application & Solution Providers, Middleware Service Providers and Infrastructure & Protocols Providers), by Region (North America, Europe, Asia-Pacific and the Rest of the World) – Forecast till 2024