PUBLISHER: The Business Research Company | PRODUCT CODE: 1808716
PUBLISHER: The Business Research Company | PRODUCT CODE: 1808716
Blockchain technology in the insurance sector aims to revolutionize various facets of the industry. Insurers utilize blockchain to streamline operations, cut administrative expenses, and enhance customer satisfaction by facilitating quicker and more precise service delivery.
In the realm of blockchain in insurance, the primary components encompass solutions and services. Solutions encompass blockchain-based applications, platforms, or systems that empower insurers to efficiently and securely manage policies, claims, and other insurance processes. This enhancement significantly bolsters operational efficiency and customer contentment. These components find application across enterprises of varying scales, encompassing identity management, fraud detection, claims processing, payments, governance, risk, and compliance (GRC) management. Such innovations cater to diverse end-use sectors such as life insurance, health insurance, and title insurance.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.
The blockchain in insurance market research report is one of a series of new reports from the business research company that provides blockchain in insurance market statistics, including blockchain in insurance industry global market size, regional shares, competitors with an blockchain in insurance market share, detailed blockchain in insurance market segments, market trends and opportunities, and any further data you may need to thrive in the blockchain in insurance industry. This blockchain in insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The blockchain in insurance market size has grown exponentially in recent years. It will grow from $1.94 billion in 2024 to $3.08 billion in 2025 at a compound annual growth rate (CAGR) of 58.7%. The growth in the historic period can be attributed to increased fraud prevention, streamlined claims processing, improved data security, enhanced transparency and trust, regulatory compliance, cost reduction, and increased customer satisfaction.
The blockchain in insurance market size is expected to see exponential growth in the next few years. It will grow to $17.89 billion in 2029 at a compound annual growth rate (CAGR) of 55.2%. The growth in the forecast period can be attributed to the adoption of smart contracts, integration with IoT devices, the growth of parametric insurance, the expansion of consortiums and partnerships, the evolution of the regulatory landscape, a focus on data privacy and compliance, and increased insurance digitization. Major trends in the forecast period include blockchain interoperability, tokenization of insurance assets, integration with AI and ML, the emergence of decentralized insurance models, the use of oracles for external data integration, blockchain-based identity verification, and the development of privacy-preserving solutions.
The forecast of 55.2% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through higher premiums for smart contract-based policies, as oracle data feeds and claims automation platforms, predominantly imported from Germany and Singapore, face tariff-related price increases that impact operational efficiency. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The increasing prevalence of fraudulent insurance claims is expected to drive the growth of blockchain technology in the insurance market in the future. Fraudulent insurance claims refer to dishonest or false claims made by policyholders or beneficiaries to insurance companies for financial gains they are not entitled to. The rise in fraudulent insurance claims can be attributed to economic pressures leading individuals to seek financial benefits through dishonest means, the perception that insurance fraud is easy and low-risk, and inadequate detection and investigation measures by insurance companies. Blockchain technology in insurance helps combat fraudulent claims by providing a transparent and immutable ledger of transactions, ensuring that all claims are verified and authenticated through a decentralized consensus mechanism. For example, in February 2024, Allianz Insurance plc reported identifying $98.04 million worth of claims fraud in 2023, up from $89.55 million in 2022. Thus, the increasing number of fraudulent insurance claims is pushing forward the adoption of blockchain in the insurance market.
Major companies in the blockchain insurance market are focusing on developing advanced solutions, such as blockchain-based insurance, to provide greater transparency, faster claims processing, and enhanced security. Blockchain insurance utilizes blockchain technology to improve transparency, efficiency, and security within the insurance industry by automating processes such as claims handling, underwriting, and policy management. For example, in January 2022, Etherisc, a Germany-based blockchain insurance company, launched a blockchain-powered insurance application. This platform autonomously issues policies and processes payouts for flight delays and cancellations. By utilizing the decentralized security of the Ethereum blockchain and the Chainlink oracle framework, it ensures a secure and transparent solution for policyholders. The end-to-end automation of this process removes the need for intermediaries, thereby streamlining the entire insurance experience.
In February 2022, XA Group (XA), a UAE-based provider of advanced automotive repair solutions, acquired Addenda Technologies Ltd. to innovate the claims process and enhance motor claims recovery in the region. Addenda Technologies Ltd. is a UAE-based blockchain-based insurtech company specializing in insurance solutions.
Major companies operating in the blockchain in insurance market are Microsoft Corporation, Amazon Web Services Inc. (AWS), Accenture plc, International Business Machines Corporation (IBM), Deloitte Touche Tohmatsu Limited, PricewaterhouseCoopers (PwC), Ernst & Young Global Limited, Oracle Corporation, KPMG International Cooperative, SAP SE, Capgemini SE, Lemonade Inc., R3 LLC, Metromile Inc., OneConnect Financial Technology Co. Ltd., Bitfury Group Limited, Guardtime AS, Insurwave, MetLife Insurance, Symbiont.io Inc., FidentiaX, ChainThat Limited, BTL Group, ConsenSys, Etherisc GmbH, Stratumn SAS, Kaleido Inc., Factom Inc., Auxesis Group, Everledger Ltd.
North America was the largest region in the blockchain in insurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the blockchain in insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the blockchain in insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The blockchain in insurance market consists of revenues earned by entities by providing services such as secure data management, automated claims processing, fraud detection and prevention, and smart contract implementation. The market value includes the value of related goods sold by the service provider or included within the service offering. The blockchain in insurance market also includes sales of blockchain-based insurance platforms, digital wallets for policy management, secure identity verification tools, and smart contract solutions. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Blockchain In Insurance Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on blockchain in insurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for blockchain in insurance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The blockchain in insurance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.