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Blockchain In Insurance Market size was valued at $208M in 2020 and is projected to reach $25B Million by 2028, growing at a CAGR of 82.42% from 2021 to 2028. The rising frequency of bogus insurance claims, as well as the demand for more transparent and trustworthy procedures, are driving market expansion. Furthermore, the rising usage of blockchain as a service and the Internet of Things (IoT), as well as lower ownership costs, have a positive impact on market growth.

Challenges of the Insurance Industry

The rise of fraudulent insurance claims, along with the need for more transparent and trustworthy processes, is driving market expansion. Blockchain technology is also being adopted for real time payments against assets, resulting in significant cost savings. Lower ownership costs, along with the growing popularity of IoT devices, are also contributing to market growth. The increasing usage of blockchain as a Service (BaaS) and the Internet of Things, as well as lower ownership prices, are all factors that are contributing to market growth.

Insurance companies are in one of the most vulnerable industries when it comes to data loss and fraud. Fraudulent activities are on the rise, resulting in higher premiums for consumers. Insurance companies need to replace legacy systems with more efficient ones to prevent fraudulent claims. Blockchain technology could provide an effective solution to this problem. Blockchain technology could help them reduce costs and increase efficiency.

Benefits of Blockchain

Transformations with the Help of Blockchain

Blockchain technology can help the insurance industry transform a number of processes. It provides fast, secure and transparent data exchange, visibility for all parties and allows for all transactions to be verified. Blockchain also eliminates intermediaries and has the potential to disrupt the insurance value chain. Key transformations blockchain could bring to insurance include:

• Development and acceleration of new products and markets
• New approaches to underwriting, contracts, and claims management via the combination of smart contracts and the Internet of Things (IoT)
• Complete revision of insurance agreement procedure
• Brand new reinsurance approaches, internal reinsurance via smart contracts in particular
• The major transformation of asset management with automated settlement and delivery of intangibles