Turning disruptive power of Blockchain in the insurance market into innovative opportunities

TL;DR

This paper explores how blockchain technology can transform the insurance industry by turning its disruptive potential into innovative business opportunities, supported by a specific use case.

Contribution

It presents a blockchain-based use case demonstrating how the insurance sector can leverage blockchain's disruptive power for innovation.

Findings

Blockchain can significantly reduce intermediaries in insurance processes.

The insurance blockchain market is projected to reach USD39.5 billion by 2030.

Blockchain enables more transparent and efficient insurance transactions.

Abstract

Insurance has been around for more than centuries. This risk mitigation strategy has been utilized in maritime commerce as early thousand years ago, where Asian merchant seafarers were pooling together their wares in collective funds to pay for damages of individual capsized ship. In 2018, insurance industry made up 6 percent of global GDP while financial industry amounted to about 7 to 9 percent of the US GDP.2020, the industry net premiums totaled USD1.28 trillion, by 2030, blockchain insurance market value is estimated to reach USD39.5 Billion. Despite of growing reform, the insurance market is dominated by intermediaries assisting people to match their insurance needs. While many predictions focused on artificial intelligence, cloud computing, blockchain stands out as the most disruptive technology that can change the driving forces underlying the global economy. This paper presents a blockchain business use case and how insurance industry can turn blockchain disruptive power into innovative opportunities.