Blockchain-based insurance will transform claims administration and save $10bn in costs globally by 2024, up from $1.1bn in 2021, according to a report from Juniper Research.
It claims insurance providers will increasingly leverage the benefits of increased process transparency and real-time data sharing. Data on blockchain networks is accessible to all parties and removes the risk of duplication and fraud.
The findings come from Blockchain in Financial Services: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2030.
Its report also stated the US insurance market will see sharp rises in total cost savings through blockchain use for premium issuance management between 2021 and 2024.
In terms of US health insurance sector, Juniper expects the number of claims processed via blockchain to jump from two million in 2021 to 24 million in 2024. A reason for this is that health insurance is a resource-intense area and the capacity for blockchain to replace inefficient processes and increase system interoperability to be vital.
The report also identified that thanks to the clear benefits of blockchain for insurance, barriers to implementation will be overcome and enabling the technology to flourish.
Research author Susannah Hampton added, “Insurers must address barriers to implementing blockchain technology through investment and partnerships. Any blockchain solutions deployed must integrate into existing underwriting and claims management platforms and offer an increased value proposition beyond what is already possible.”
Juniper Research recently released another study, which claimed global e-commerce payment transactions is expected to exceed $7.5trn by 2026.
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