Block-chain is basically an encrypted protocol designed to secure digitalized data. It is basically formed of encrypted list of database that is considered as block. Currently block-chain plays vital role in insurance industry. Basically in insurance sector block-chain is implied for fraud detection, claims management, payment modeling, and reinsurance management.
Currently number of false insurance claims is tremendously increasing. Fraud risk management is one of the prime areas of concern for an insurer. Such frauds are driving up the cost of both insurer and policy holder. Handling such frauds is burdensome task. Therefore to prevent or handle such sharp practices block-chain is widely used by numerous insurance companies. The boosting need of handling such frauds is significantly driving the market growth. Blockchain handles such fraud claims with viable proofs. It basically develops a highly secured system that verifies any insurance claim quickly. However, constant need of energy sources to run the blockchain software for encryption and decryption is restraining the market growth to some extent. Transparency and trust is one of the prime matters of concern for insurance industry that is significantly offered by blockchain technology. The constant need of enhancing the efficiency and claims processing is expected to create enormous opportunities in future.
The blockchain in insurance market is bifurcated on the basis of product, application area, component, application, and region. Based on product the market is segmented into health insurance, auto insurance, and life insurance. Auto insurance segment is observed rapidly growing due to accelerating rate of road accidents that has simultaneously increased the rate of automobile damage. On the basis of application area served, the market is fragmented into underwriting, claims processing and client on boarding. Underwriting segment plays vital role in insurance industry and observed to hold significant market share. By component the market is classified into tools and services. Services segment is anticipated to hold massive share in the upcoming years due to boosting rate of consulting services of insurance industry. Blockchain is used in diversified applications of insurance industry including smart contracts, GRC management, identity management and fraud detection, death and claims management, payments and others. Rising insurance fraud claims rate is immensely accelerate the growth of identity management and fraud detection segment. Geographically the market is classified into five regions North America, Europe, Asia Pacific, Latin America, and MEA. Due to high rate of adoption of blockchain, North America is observed to significantly dominate the market.
At present adoption of blockchain technology is rapid pace; key players of the market are highly focused on enhancing the security level offered. Globally renowned key players of blockchain in insurance Bitfury, Applied Blockchain, BlockCypher, Algorythmix, Auxesis Group, BTL Group, Cambridge Blockchain, Digital Asset Holdings, Factom, Guardtime, RecordsKeeper, Microsoft, IBM, Earthport, iXLedger, SAP , Symbiont and SafeShare Global.
The report segments global blockchain in insurance market as follows:
Global Blockchain in Insurance Market: Product Segment Analysis
- Health Insurance
- Auto Insurance
- Life Insurance
Global Blockchain in Insurance Market: Application Area Segment Analysis
- Underwriting
- Claims Processing
- Client on Boarding
Global Blockchain in Insurance Market: Component Segment Analysis
- Tools
- Services
Global Blockchain in Insurance Market: Application Segment Analysis
- GRC Management
- Identity Management and Fraud Detection
- Death and Claims Management
- Payments
- Others (content storage management and customer communication)
Global Blockchain in Insurance Market: Regional Segment Analysis
- North America
- U.S.
- Europe
- UK
- France
- Germany
- Asia Pacific
- China
- Japan
- India
- Latin America
- Brazil
- Middle East and Africa
