Blockchain Insurance Market: Size, Dynamics, Regional Insights, and Market Segment Analysis

Blockchain Insurance Market was valued at USD 325.42 Million in 2021, and it is expected to reach USD 25315.55 Million by 2029, exhibiting a CAGR of 72.33% during the forecast period (2022-2029)

Blockchain insurance is a shared record-keeping technology in which the data is in cryptographically secured form. Blockchain technology will enable data to be transferred in real-time between multiple parties in a trusted and verifiable manner while also bringing about considerable efficiency gains, cost savings, transparency, quicker pay-outs, and fraud reduction. Additionally, Blockchain can help new insurance methods create better markets and products.

Insurance transactions via blockchain accounts are made possible by Ethereum's smart contracts and used for, adding further automation and tamper-proof audit trails. Notably, the low cost of smart contracts and related transactions enables the entry of underinsured markets in developing countries by making numerous items more competitive, which is driving blockchain insurance market growth across the world.

India’s Insurance industry stands at nearly $130 Bn. in 2021. Over the past two decades, the Indian insurance business has grown at a CAGR of 17%, and it is expected that this significant growth trajectory would continue during the forecast period. Future economic opening up will mostly benefit general insurance companies, especially as trade activity improves and demand for health and auto insurance rises. Over the next ten years, the vehicle insurance market is expected to grow significantly. In the meantime, a steep yield curve with low short-term rates and higher long-term rates will be advantageous for the life insurance industry. The growth of online channels and digital issuance is expected to continue. Web aggregators already account for 30–40% of the issuance of digital insurance, and their market share within it has been steadily growing. As a result, these factors are expected to drive the blockchain insurance market growth through the forecast period.

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Research Methodology
MMR provides a complete research technique that involves primary research as well as data triangulation based on top-down and bottom-up approaches to verify the estimated Blockchain insurance market sizes. The information needed to estimate the market size and forecast for various segments at the global, regional, and countrywide levels was gathered using the most trustworthy public sources and interviews with the right stakeholders. During the forecast period, a market's growth rate, or CAGR, is assessed based on a variety of factors and their relative relevance to the market. These components include market drivers, market restraints, industry challenges, market and technological advances, market trends, etc. Porter’s analysis focuses on themarket's competitiveness, new entrants, supplier and buyer power, and the risks posed by competing goods and services in MMR Report. PESTLE identifies variables including politics, economy, sociocultural, technology, law, and the environment that could have an impact on an organization's competitive position in blockchain insurance market.
Blockchain Insurance Market Dynamics:
Drivers:

Customers and insurers may adopt blockchain-enabled smart contracts to manage claims in a transparent, quick, and irrefutable way, streamlining the claims processing process and enhancing customer satisfaction. For instance, smart contracts can be configured to receive information from telematics devices, raise insurance claims, and initiate pay-outs in the event of an accident. Additionally, they can suggest trustworthy gas stations nearby and, if necessary, call for medical aid. Additionally, a number of procedures that often require manual intervention can be automated using smart contracts. When it comes to data theft and fraud, the insurance sector is one of the most vulnerable.

Blockchain application in insurance is one of the cutting-edge approaches to decrease fraud, mitigate risk, and increase client happiness. The quantity of fraudulent actions in the insurance sector is increasing. It presents a strong argument in favor of integrating blockchain technology into its procedures. In order to stop fraudulent claims, insurance companies must replace the outdated legacy systems that are already a part of their insurance systems. A decentralized public ledger is provided by blockchain and can be shared by many unreliable parties. It might therefore be used to spot fraud and get rid of mistakes. Additionally, blockchain technology is based on the idea of validation and can be used to confirm the legitimacy of insurance customers' policies by offering a thorough historical record of a policyholder's prior transactions. As a result, blockchain technology enhances the effectiveness of fraud detection and prevention. As a result, the blockchain insurance market is expected to rise during the forecast period.

Opportunities:

Blockchain is growing rapidly in the insurance industry. The market's BSFI segment, in particular, is in high demand. The industry will have lots of potential for growth due to technological advancement. The development of technology will enable insurance companies to offer specific services. The enormous rise of BaaS is beneficial to the growth of the market. Large tech companies are embracing the BaaS. Their cloud computing modules are including the BaaS. All of these elements support the growth of the blockchain insurance market. Growth prospects in the insurance industry will result from the growing R&D in blockchain technology. Innovation and market growth will result from research and development. During the forecast period, a Blockchain requirements application could be released. Consumers will be attracted in by these market trends. Ultimately increasing the blockchain insurance market's growth potential and income.
Blockchain Insurance Market Trends:
• In particular circumstances, blockchain implementation should be taken into consideration. If a number of parties are involved in the transaction and they need both the guarantee of an intermediary and an accurate, immutable record of the date and time, blockchain provides a disintermediation solution. Blockchain can be helpful in cases where there is no central trusted authority accessible or desired, numerous uses of the same item are highly likely, and the parties participating in transactions may have competing interests. Conversely, insurance players can continue using their current transaction models if transactions only involve a small number of participants, do not require an intermediary, or if an established, reliable intermediary already exists.

• The initial impact of blockchain in insurance will come from highly focused activities across the value chain and businesses. It might identify the greatest use cases to develop a design that will look, cut expenses, and boost the effectiveness of the major financial institutions. Eliminating substantial information discontinuities between numerous parties in current business processes will be beneficial rather than gaining value from a new exchange.

• The growing popularity of platforms based on sharing economy makes it authoritative to offer real-time insurance coverage to the renters who book on this platform. Dynamic insurance, when existing through Blockchain technology, can help real-time usage-based insurance while continuing the entire history of transactions.

Limitations of Using Blockchain for Insurance in Blockchain Insurance Market:

• Complex to understand: Understanding blockchain is complicated because of its complexity, which also makes it difficult for people to appreciate its advantages. Before going into this ground-breaking technology, it is important to comprehend the fundamentals of distributed ledger and encryption.

• Nascent technology: Because Blockchain is still in its infancy, addressing challenges like data caps, transaction speeds, and verification procedures will be crucial to its widespread adoption.

• Unpredictable regulatory status: Insurance regulations must constantly be amended because they are uncertain and dynamic. Due to the unstable environment, blockchain faces significant challenges.
Blockchain Insurance Market Segment Analysis
Based on Provider, the application and solution provider segment is estimated to be a dominating end-user segment during the forecast period. Blockchain technology is a blockchain platform that is dispersed throughout a company network and permanently records business transactions. Blockchain technology enables a universal solution for verifying users' records in an immutable data chain by decentralising credential ownership. Blockchain technology has the potential to revolutionise the digital economy and deliver disruptive consequences.

Among the services provided by blockchain insurance market vendors are digital identity verification, money transfers, exchanges, documentation, capital markets, and trading. These businesses offer blockchain technology that are more likely to benefit organisations by removing transactional data duplication and providing recurring authentication and reconciliation for legal and business requirements.



By Application, in 2021, the payment segment held the largest share of the blockchain insurance market. Blockchain technology can be used to make real-time payments against assets, which significantly lowers costs. One of the most recent trends is the use of blockchain technology in payment applications. Companies on the market are creating cutting-edge blockchain technology to alter payments.
Blockchain Insurance Market Regional Insights
North America dominated the global blockchain insurance market in 2021, with a revenue share of more than 42% in 2021. Rising initiatives by insurance agencies to inform insurers about the benefits of using blockchain technology, high adoption in the finance sector, rising skilled expertise for cryptocurrencies, and rising adoption in Canada and the US are all contributing to the global blockchain insurance market growth in the region.

During the forecast period, the blockchain insurance market in the APAC region is expected to rise strongly. The introduction of blockchain-enabled medical insurance services in China, the development of cutting-edge technologies in India, the expansion of initiatives by the Indian insurer consortium, and improvements to claims management systems and insurance services are all contributing to the blockchain's role in the region's growing insurance blockchain insurance market.
Blockchain in Indian Insurance industry:
Specific areas of innovation, like blockchain, may help to reduce insurance costs as emerging technologies advance inside India's financial services industry. Although there are many developing technologies available, such as Cloud, AI, RPA, Big Data, etc., blockchain stands out when it comes to pricing.

Prescriptive requirements: The Indian Insurance Regulatory and Development Authority is pointing out deficiencies in the insurance industry more and more. Policy uniformity was one of the regulators' key priorities in the year 2020. The regulator once more raised concerns about price increases in the insurance and reinsurance sectors in 2021.

Competitive Landscape:

The competitive landscape section in the blockchain insurance market offers a deep dive into the profiles of the leading companies operating in the global market landscape. It offers captivating insights on the key developments, differential strategies, and other crucial aspects about the key players having a stronghold in the blockchain insurance market.

• The largest Ethereum mining pool in the world, Sparkpool, and Applied Blockchain, Inc. announced in May 2021 that they had completed a Purchase Agreement for the purchase of NVIDIA GPUs as part of the company's strategy to develop a significant Ethereum / Altcoin mining operation.

• A specialised insurer named Beazley has announced the introduction of a new Directors' & Officers' liability (D&O) insurance plan for bitcoin enterprises in 2022.

• According to Zetrix, Covinsure will start offering insurance in 2022 with blockchain technology and cryptocurrency as a payout. Only a passport and a Zetrix wallet are needed to obtain insurance thanks to Zetrix.
Blockchain Insurance Market Scope: Inquire before buying



Blockchain Insurance Market


Base Year
2021
Forecast Period
2022-2029


Historical 
Forecast CAGR
Market Size 2021
Market Size 2029


2017 to 2021
72.33%
US$ 325.42 Mn
US$ 25315.55 Mn


Segments Covered


by Provider
• Application and solution provider
• Middleware provider
• Infrastructure and protocols provider
by Organization Size
• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises
by Application
• GRC management
• Death and claims management
• Identity management and fraud detection
• Payments
• Smart contracts
• Others (content storage management and customer communication)


North America
• United States
• Canada
• Mexico
Europe
• UK
• France
• Germany
• Italy
• Spain
• Sweden
• Austria
• Rest of Europe
Asia Pacific
• China
• S Korea
• Japan
• India
• Australia
• Indonesia
• Malaysia
• Vietnam
• Taiwan
• Bangladesh
• Pakistan
• Rest of APAC
Middle East and Africa
• South Africa
• GCC
• Egypt
• Nigeria
• Rest of ME&A
South America
• Brazil
• Argentina
• Rest of South America



Blockchain Insurances Market Key Players are:
• Ziglu Limited (US)
• Circle Internet Financial Limited (US)
• ConsenSys (US)
• Digital Asset Holdings (US)
• Symbiont (US)
• AlphaPoint (US)
• AWS (US)
• BitPay (US)
• BlockCypher (US)
• BTL Group (US)
• IBM Technology (US)
• Microsoft (US)
• Oracle (US)
• BTL Group (Canada)
• ChainThat Limited (UK)
• Applied Blockchain (UK)
• Everledger (UK)
• Bitfury (Netherlands)
• Lykke AG (Switzerland)
• Guardtime (Switzerland)
• SAP SE (Germany)
• Horizon state Pty Ltd. (Australia)
• Auxesis Group (India)
• Algorythmix (India)
• L&T Finance Holdings Linited (India)
• Tata Group (India)

Frequently Asked Questions:

1] What segments are covered in the Global Blockchain Insurance Market report?
Ans. The segments covered in the Blockchain Insurances Market report are based on Provider, Application and Organization Size.

2] Which region is expected to hold the highest share in the Global Blockchain Insurance Market?
Ans. The North America region is expected to hold the highest share in the Blockchain Insurances Market.

3] What is the market size of the Global Blockchain Insurance Market by 2029?
Ans. The market size of the Blockchain Insurances Market by 2029 is expected to reach USD 25315.55 Mn.

4] What is the forecast period for the Global Blockchain Insurance Market?
Ans. The forecast period for the Blockchain Insurances Market is 2021-2029.

5] What was the market size of the Global Blockchain Insurance Market in 2021?
Ans. The market size of the Blockchain Insurances Market in 2021 was valued at USD 325.42 Mn.