According to a new analysis from Juniper Research, blockchain-based insurance will alter claims management, saving $10 billion by 2024, up from $1.1 billion in 2021.
Improved process transparency and real-time data exchange will be increasingly leveraged by insurance companies.
All parties have access to data on blockchain networks, which eliminates duplication of effort and reduces fraud.
According to the new study, Blockchain in Financial Services: Key Opportunities, Vendor Strategies, and Market Forecasts 2021-2030, blockchain will save money in the insurance industry across all processes, especially in insurance-heavy markets like the United States.
Between 2021 and 2024, total cost reductions from the usage of blockchain for premium issuance and management will skyrocket, accounting for more than half of all cost savings globally.
Insurance is a complicated, data-siloed, and inefficient industry, and blockchain can help by enabling equitable data access and reducing fraud through enhanced data openness.
Health insurance in the United States will be a significant source of savings.
The number of claims processed via blockchain will increase from 2 million in 2021 to 24 million in 2024 in the United States, which is a substantial market for health insurance.
Because health insurance is a resource-intensive industry, blockchain’s ability to replace inefficient processes and improve system interoperability will be critical to its success.
Stakeholders must overcome obstacles.
Because of the clear benefits for insurance, impediments to adoption will begin to be removed, allowing blockchain networks to grow, according to the paper.
Insurers have been hesitant to modernize their operations in the past, and there are currently no global standards in place for blockchain networks.
Insurers must address challenges to embracing blockchain technology through investment and collaborations, according to research author Susannah Hampton.
She also added that any blockchain solutions that are used must be able to interact with existing underwriting and claims management platforms and provide a higher value proposition than what is now available.
Juniper Research was founded in 2001, in the middle of the telecoms and dot-com bust, by industry consultant Tony Crabtree. In February 2002, the company became incorporated and it has since evolved to become one of the leading analyst organizations in the mobile and digital technology area.
Juniper Research focuses on finding and evaluating new high-growth market segments in the digital ecosystem. Their services include market sizing and forecasts, as well as competitive analysis, strategic assessment, and business modeling.
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