Brief: Forecast Usage Of Blockchain Technology In The Insurance Sector
Creating a startup that deals toward the transformation of the insurance industry using blockchain is as we know, is very challenging. For some who don’t know, the blockchain in insurance market size has grown from USD 64.5 million in 2018 and expected to grow to USD 1,393.8 million by 2023, at a Compound Annual Growth Rate (CAGR) of 84.9% during the forecast period. The increasing number of fraudulent claims in insurance companies and the emerging need to have transparent and trustworthy systems are expected to drive the overall growth of the blockchain in the insurance market.
The infrastructure and protocols provider segment is expected to have the largest market share during the forecast period
Many infrastructure and protocol providers help enterprises implement the blockchain technology by developing solutions that fulfill the increasing need for customer services, including mining, public, and special protocols. The blockchain technology can synchronize data across multiple entities, build trust, and engage customers by developing products and services that streamline and enhance the current payment processes. The effective and economic integration of the blockchain technology needs profound cooperation among incumbents, innovators, and regulatory bodies, which, at times, results in delayed implementation. Firms are, therefore, adopting coexistence as an approach to combine their infrastructure with the emerging technologies like Ethereum, which is a decentralized platform that supports smart contracts and applications that run without any possibility of downtime, censorship, fraud, or third-party interference. As for us here in Inmediate — its Zilliqa, which is a scalable and secure blockchain platform for hosting decentralized applications.
The smart contracts application is expected to have the largest market share during the forecast period
Insurance vendors are deploying blockchain-based smart contracts to reduce the cost of verification, execution, arbitration, and fraud prevention. Companies operating in the blockchain in insurance market offer enterprise-ready solutions to overcome the existing limitations of smart contracts in terms of privacy, scalability, auditability, confidentiality, and performance. And as the year moves forward, blockchain and smart contracts have the potential to improve the insurance sector efficiency by almost 30%, especially if there is an ecosystem, which is why we here at Inmediate, is trying to create an ecosystem that enables transactions using smart contracts, providing speed, full clarity, and at much lower costs than ever imagined. And as this year moves forward, especially this Q1, we are expecting an Oracle network established with interface and settlement functions. And we are hoping that you are all still there to support us, as we try to transform insurance. Again.