Cost savings growth of 800% expected by 2024
Blockchain-based insurance to exceed $10B in cost savings over 3 years. Source: shutterstock.com
According to Juniper Research, blockchain?based insurance is expected to transform claims administration, saving $10 billion in costs globally by 2024, up from $1.1 billion in 2021.
Interestingly, 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 thus eliminating duplication of effort and minimising fraud.
The report found that the insurance sector will see cost savings from blockchain use across all processes, particularly in insurance-heavy markets such as the US.
The US market is anticipated to see sharp rises in total cost savings through blockchain use for premium issuance and management between 2021 and 2024. It would represent more than half of all cost savings globally by 2024.
Insurance is a complex, data-siloed, often inefficient area of business, and blockchain offers critical advantages by enabling equitable data access and minimising fraud through increased data transparency.
The report identified that because of the clear benefits for insurance, barriers to implementation will begin to be overcome; enabling blockchain networks to proliferate.
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