- FCA publishes final report of its Wholesale Insurance Brokers market study-no evidence of significant levels of harm that merit the introduction of intrusive remedies but some areas of concern with scope for improvement
- EIOPA issues Recommendations for the insurance sector in light of the UK withdrawing from the European Union without a withdrawal agreement
- Insurance Europe responds strongly to recently-published US Treasury/Internal Revenue Service’s proposed Base Erosion and Anti-abuse Tax (BEAT) regulations
- SCOR "delivers robust growth and solid recurring profitability" in 2018 says CEO Kessler
- KPMG report indicates UK InsurTechs saw over $1bn of investment activity through 2018, up from $792m in 2017
- Allianz increases fund size of digital investment unit to E1bn
- DeadHappy, the UK’s first fully digital life insurance brand, launched expired
- The Floow involved in UK Government’s UPLIFT project to enhance technologies in improved risk understanding for motor insurance products making mobility smarter and safer for all expired
- Unions and insurers issue joint warning about burden of significant increase in EU regulation on insurance workers expired
- FCA announces Goldwag as new Chair of the independent Financial Services Consumer Panel expired
- Antares appoints Battle as CEO expired
- Arig has tough 2018-has taken certain measures to reorganize its Lloyd’s book of business 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)