Blockchain in Insurance Market Opportunities and Comprehensive Analysis

Posted by Ehtesham Peerzade on January 17th, 2020

Market Highlights

The global blockchain in insurance market had a market value of USD 62.53 million in 2018 and is estimated to reach USD 1.42 billion by 2024, registering a CAGR of 69.72% during the forecast period 2019–2024. Market Research Future (MRFR) has segmented the blockchain in insurance market into type, service provider, organization size, application, sector, and region.

Increasing adoption of cloud-based solutions and services, increasing applications areas of IoT are some of the factors expected to create significant opportunities for the market in the coming years. Whereas, uncertain regulatory issues are one of the major challenges faced by the global blockchain in insurance market.

Key Players:

Blockchain in insurance market is expected to witness significant growth in the coming years owing to the presence of numerous large players active in the regional market. IBM Corporation, Oracle Inc., Microsoft Corporation, AWS, SAP SE, Earthport, BTL Group, Bitfury, Digital Asset Holdings, Factom, Auxesis Group, Bitpay, Circle, Cambridge Blockchain, Chainthat Limited, Blockcypher, Safeshare Global, Everledger, Consensys, Guardtime, Symbiont, Recordskeeper, Applied Blockchain, Algorythmix, and Ixledger are the companies leading the Blockchain in insurance market globally.

Segmentation:

By type, the blockchain in insurance market has been sub-segmented into public blockchain, private blockchain, and consortium or federated blockchain. Among these, currently, public blockchain is dominating the market as blocks in this type are verified one after another and cannot be modified, which makes it a highly secured blockchain type. However, public blockchain is an open network where anyone can access the block and read it, which is one of the challenges faced by it. Whereas, consortium blockchain is projected to witness a high growth rate in the coming years as it validates the blocks based on pre-defined rules made by a federation of blockchain, which increases the security level of the blocks.

By service providers, the market has been segmented into application & solution providers, middleware service providers, and infrastructure & protocols providers. Among these, the infrastructure & protocols providers segment is dominating the market due to increasing demand from banks, finance, and insurance service providers for advanced and secured infrastructure in order to deploy blockchain solutions. Whereas, application and solution providers are projected to register the highest CAGR during the forecast period due to the rising adoption of cloud-based services and secured network gateways for money transactions by end users.

By organization size, the blockchain in insurance market has been segmented into SMEs and large enterprises. Among these, large enterprises segment has contributed the highest in terms of revenue generation for the market due to high investments in developing skilled expertise for blockchain technology. Whereas, SMEs are projected to witness a high growth rate in the coming years.

By application, the market has been segmented into fraud detection & risk prevention, property & casualty insurance, smart contracts, GRC management, and reinsurance. Among these, the smart contracts segment is dominating the market as it enhances the security of information by benefitting information blocks with verification at low cost and by reducing the risk of frauds and security breaches. The fraud detection & risk prevention segment is projected to register the highest growth rate in the coming years due to the increasing adoption of advanced security solutions of blockchain in order to minimize the risk of frauds and duplication of data presented in the blocks.

By sector, the market has been segmented into life insurance and health insurance, title insurance, and auto insurance, and others. Among these, life insurance and health insurance sector are leading the market owing to factors such as developing network and security platforms for claim registration and assessment process and payment & closure process. However, due to the low interest rates provided by the insurance companies, the market is expected to witness a decline in growth rate during the forecast period.

Regional Analysis:

By region, the market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. North America has been further segmented into the US, Canada, and Mexico. Europe has been further segmented into Germany, the UK, France, Spain, and Italy. Asia-Pacific has been sub-segmented into China, Japan, India, Singapore, Australia, and South Korea. And, the rest of the world has been classified into the Middle East & Africa and South America.

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