Blockchain in insurance sector to hit US$1.4bn by 2023

July 11 2018 by InsuranceAsia News Staff

In 2017, the use of blockchain in the insurance market was valued at US$43 million, according to a new market research report published by Markets and Markets.

The report, Blockchain in Insurance Market, showed that the market size is expected to further swell to US$1.4 billion US dollars by 2023 or an annual growth rate of 84.9%.

The fuel for this growth will be a growing need to have transparent and trustworthy systems, as well as countering the general trend witnessed in the insurance sector of an increase in claims-related frauds.

The report said insurers are also deploying blockchain-based smart contracts to reduce the cost of verification, execution, arbitration and fraud prevention.

As a result, the report found that blockchain and smart contracts have the potential to improve the insurance sector’s efficiency by almost 30%.

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