- Newslink Global Insurance Trends-The Week
- UK insurance trade associations respond to latest Brexit White Paper
- Munich Re says first half catastrophe losses lowest since 2005 estimated at around $33bn
- Lloyd’s launches a new digital distribution platform– Lloyd’s Bridge–designed to quickly, easily and efficiently connect insurance businesses and entrepreneurs with Lloyd’s underwriters
- FICO and Ovum assess company views on level of cyber security across market sectors
- AXA XL is the new group branding
- PRA publishes further Solvency II Consultation Paper, Policy Statements and Supervisory Updates expired
- Accenture to serve as the lead framework architect for The Institutes RiskBlock Alliance-a blockchain consortium for the risk management and insurance industry expired
- Next Insurance InsurTech raises $83m in series B round of funding expired
- Shift Technology to develop health insurance counter fraud database for H I Counter Fraud Group(HICFG) expired
- SSP's Keychoice partners with DAS UK Group to provide its broking community with access to two new commercial propositions for businesses through its e-trading platform expired
- LIIBA creates new working group, the Broker Delegated Authority Working Group(BDAWG) focussing the work of the London Market Target Operating Model and its impact on binders and line slips expired
11th July 2018
New global report predicts Blockchain spend in insurance markets to grow from $64.5m to $1,393.8m in next five years
According to a new market research report "Blockchain in Insurance Market by Provider, Application(GRC Management, Death & Claims Management, Identity Management & Fraud Detection, Payments, and Smart Contracts), Organization Size (Large Enterprises and SMEs), and Region-Global Forecast to 2023", published by MarketsandMarkets, the market size is expected to grow from $64.5m in 2018 to $1,393.8m by 2023, at a Compound Annual Growth Rate(CAGR) of 84.9% during the forecast period.
The increasing number of fraudulent claims in insurance companies and the emerging need to have transparent and trustworthy systems are expected to drive the overall growth of the Blockchain in Insurance Market.
The infrastructure and protocols provider segment is expected to have the largest market share during the forecast period.
Infrastructure and protocols providers help enterprises implement the blockchain technology by developing solutions that fulfill the increasing need for customer services, including mining, public, and special protocols. The blockchain technology can synchronize data across multiple entities, build trust, and engage customers by developing products and services that streamline and enhance the current payment processes. The effective and economic integration of the blockchain technology needs profound cooperation among incumbents, innovators, and regulatory bodies, which, at times, results in delayed implementation. Firms are, therefore, adopting coexistence as an approach to combine their infrastructure with the emerging technologies. Ethereum is a decentralized platform that supports smart contracts and applications that run without any possibility of downtime, censorship, fraud, or third-party interference.
The smart contracts application is expected to have the largest market share during the forecast period.
Insurance vendors are deploying blockchain-based smart contracts to reduce the cost of verification, execution, arbitration, and fraud prevention. Companies operating in the Blockchain in Insurance Market offer enterprise-ready solutions to overcome the existing limitations of smart contracts in terms of privacy, scalability, auditability, confidentiality, and performance.
According to B3i, blockchain and smart contracts have the potential to improve the insurance sector efficiency by almost 30%.
North America is estimated to hold the largest market share during the forecast period.
The global market is segmented on the basis of regions into North America, Europe, Asia Pacific(APAC), Middle East and Africa(MEA), and Latin America. North America is expected to dominate the technology adoption in the Blockchain in Insurance Market. The financial sector, which encompasses banking, financial services, and insurance companies, is focusing on the blockchain technology for its numerous benefits. For instance, all the major banks in North America, such as JPMorgan, Royal Bank of Canada, and Bank of America, are investing in the blockchain technology. A group of Canadian banks, including Desjardins Group, Bank of Montreal, Royal Bank of Canada, Canadian Imperial Bank of Commerce, Scotiabank, and TD Bank, partnered with IBM and SecureKey Technologies to introduce digital identity management solutions, powered by the blockchain technology.
The blockchain market vendors include Applied Blockchain(UK), Algorythmix(India), Auxesis Group(India), AWS(US), Bitfury(US), BitPay(US), BlockCypher(US), BTL Group(Canada), Cambridge Blockchain(US), ChainThat(UK), Circle(US), ConsenSys(US), Digital Asset Holdings(US), Earthport(UK), Everledger(UK), Factom(US), Guardtime(Estonia), IBM(US), iXledger(UK), Microsoft(US), Oracle(US), RecordsKeeper(Gibraltar), SafeShare Global(UK), SAP(Germany), and Symbiont(US).
Blockchain Trends(224 mentions in Insurance Newslink)