Blockchain is progressively turning out to be an efficient and reliable platform for the insurance domain for obtaining operational transformation. Considerable manual data entry and harmonization is need between diverse parties in the claims processing management, which is a fallible method. Blockchain technology, by enabling insurers and policyholders to monitor and handle physical assets digitally, can systematize business regulations and computerize claims processing. This capability is expected to boost the global blockchain in insurance market during the forecast period. It enhances operational efficiency and also decreases costs.
In addition, the rising requirement to have trustworthy & transparent systems and concentrate on decreasing the overall cost of ownership is also projected to boost the market growth. Further, the expansion of blockchain as a service along with the growing infiltration of the Internet of Things (IoT) will generate prospects for this market’s growth in the years to come. Nevertheless, the vague regulatory condition and the dearth of common standards may hamper the expansion of the global blockchain in insurance market. As per the records, the insurance firms lose more than USD 80 billion to scams each year across the globe.
Blockchain is the solution to fight or decrease frauds associated with financial and insurance domains. Usually, insurers have been depending upon physical processes to validate claim data associated with history item, ownership, and product legitimacy. Nevertheless, with the advent of the Distributed ledger technology (DLT) with traits, like immutability and encryption, clearness in transactions is assured at the utmost degree, leaving no scope for culprits to deceive the system. This, in turn, is projected to propel the expansion of the global blockchain in insurance market. Numerous individual services within the insurance domain like identity management & fraud detection, smart contract, governance, death & claims management, and risk & compliance management are deemed within the market scope.
Moreover, blockchain technology firms are building solutions indulging in the diverse phases of the insurance procedure or for a specific category of insurance. To cite, in May 2018, Insurwave, a marine hull insurance platform, was introduced by a partnership of units comprising EY, Guardtime, A.P. Møller-Maersk, ACORD, and Microsoft. At present, Insurwave is in commercial use and was anticipated to manage risk for over 500,000 automated transactions and 1,000 commercial vessels in its initial 12 months of functioning. In addition, in June 2019, EY declared that Insurwave has inked an agreement with the Chinese port of Zhuhai. The deal intends to look at the connection between port logistics and blockchain marine insurance for the Greater Bay Area and further.
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