It is expected that blockchain technology will lead to significant efficiency gains and cost savings, as well as increased transparency as well as faster payouts and fraud mitigation, while also enabling data to be shared in real time between various parties in a trusted and traceable manner. Blockchains can also help new insurance practises develop better products and markets by facilitating the exchange of information.
When it comes to insurance, companies compete in a highly competitive environment where both retail and corporate customers expect the best value for their money as well as a superior online experience. With the advent of blockchain technology, the insurance industry stands to benefit from positive change and expansion.
Opportunity: Growth of blockchain in insurance in world.
Insurance transactions can be carried out over blockchain accounts, resulting in increased automation and tamper-proof audit trails.
Notably, the low cost of smart contracts and their transactions means that many products can be made more competitive in order to penetrate underinsured markets in the developing world, which is particularly advantageous.
Challenges: There is a general lack of understanding of blockchain technology.
Blockchain technology is still in its infancy, with only a few applications gaining traction across a variety of industry verticals at this time. Despite the fact that the insurance industry has shown a positive trend in terms of technology adoption, there is still much work to be done in terms of raising awareness about distributed ledger technology (DLT) and its diverse application areas in the insurance industry.
One of the most significant difficulties is a lack of understanding. As a result, it must be addressed as soon as possible. The use of blockchain in the insurance industry, as well as successful implementation stories, has the potential to increase the momentum for adoption in the industry.
The emerging blockchain ecosystem will necessitate the purchase of insurance for itself. Cyber insurance can be thought of as a template for coverage, with extensions and endorsements for financial loss (hot wallets and exchanges), specie and crime (cold wallets and vaults), professional liability (developers), and surety bonds added on top of that (technology and software projects). Insurers and technology companies can work together to assess risk and provide guidance on best practises for loss control and mitigation. However, because these are still emerging technologies, proper due diligence must be performed before they can be fully utilised by the insurance industry.
Blockchain in Insurance Market: 85.4 % CAGR
Projected Revenue: 1,628 million from 2021 to 2027For deeper dive check the full report here: https://whipsmartmi.com/report/blockchain-in-the-insurance-market
Published Date : July-2021