Blockchain Insurance Market Size

Blockchain Insurance Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for the insurance industry is expected to grow at a steady pace, with a current market value of $ 3.72 billion in 2024 and an expected value of $ 45 billion by 2035. This impressive growth is expected to continue at a CAGR of 25.44 % from 2025 to 2035, indicating a strong demand for blockchain solutions in the insurance industry. The increasing need for transparency, speed, and security in the insurance industry is the main driver for this growth, and the blockchain offers a decentralized and immutable public ledger, which will increase trust among the participants. A number of trends are driving the adoption of the insurance industry, such as the use of smart contracts to process claims and reduce fraud. Furthermore, the growing importance of data privacy and regulatory compliance is pushing insurance companies to use the blockchain for secure data management. This is why major players in the industry, such as IBM, Accenture, and Allianz, are investing in blockchain initiatives, forming strategic alliances, and launching new products to capture this growing market. These efforts not only highlight the potential of the blockchain to transform the insurance industry, but also show the industry's commitment to using the latest technology to improve the customer experience.

Regional Market Size

Regional Deep Dive

The growth of the market for Blockchain in the insurance industry is a reflection of the growing need for transparency, efficiency, and security in insurance processes. In North America, the market is characterized by a high degree of technological development and innovation, and many large insurance companies are already exploring Blockchain solutions to optimize their processes and increase the trust of consumers. In Europe, we see a lot of regulatory support and joint initiatives between insurance companies and technology companies. In Asia-Pacific, the market is growing rapidly, especially in the field of fraud prevention and claims processing. In the Middle East and Africa, interest in Blockchain applications is growing, especially in the field of increasing efficiency in business processes, while Latin America is gradually introducing the technology to improve access to insurance and reduce costs.

North America

• AIG and State Farm, the two largest American insurance companies, have already begun to use the blockchain to improve their procedures and reduce fraud.
• The introduction of regulatory frameworks such as the New York Department of Financial Services's guide to blockchain technology creates an environment conducive to innovation and implementation in the insurance sector.
• Insurers are now working together on the RiskBlock Alliance, for example, to develop solutions for enhancing data sharing and reducing operating costs, and thereby signalling a shift towards a more cooperative approach.

Europe

• The European Union is promoting the development of blockchain technology through initiatives such as the European Blockchain Partnership, which aims to create a secure and efficient digital economy, and this is also having a positive effect on the insurance industry.
• In the United Kingdom, for example, the insurance companies Aviva and Lloyd's of London are experimenting with the use of the blockchain to improve the underwriting process and customer service. The introduction of this new technology into the traditional field of insurance is part of a general trend towards innovation in the field of insurance.
• The European insurance and pensions supervisory authorities are now increasingly aware of the potential of the block chain, and EIOPA is exploring its implications for insurance supervision and the protection of consumers.

Asia-Pacific

• China and India are adopting the use of blockchain technology in insurance to combat fraud and to improve claims management, mainly because of the growing digital economy and the Internet penetration.
• The Insurance Regulatory and Development Authority of India (IRDAI) is experimenting with the use of Block Chain technology to enhance transparency and efficiency in the insurance sector. This shows the IRDAI’s willingness to adopt a forward-looking regulatory approach.
• The first example of a new type of insurance company is PolicyPal, which is based in Singapore. Its premise is that a customer-centric business model will be based on the use of the blockchain to facilitate the buying and selling of insurance policies.

MEA

• It is the United Arab Emirates which is leading the world in the application of the Blockchain in the insurance sector, and it is the policy of the United Arab Emirates to make the United Arab Emirates the first country to be entirely based on the Blockchain.
• Insurers in South Africa are now looking at how to use blockchain technology to improve the efficiency of their operations and reduce costs. This is in response to a need to increase the quality of their service in a highly competitive market.
• The emergence of new ideas in the insurance sector in the light of government initiatives such as Vision 2030 is encouraging the local insurance industry to adopt blockchain technology.

Latin America

• Brazil and Mexico are exploring the possibilities of using the blockchain to improve the availability of insurance and reduce the cost of administration, in response to the growing demand for digital solutions.
• The Brazilian insurance market is witnessing the emergence of new trends, with the collaboration between established insurance companies and fintechs developing solutions based on blockchain technology.
• Regulators in the region are beginning to recognize the potential of blockchain and are beginning to discuss how to facilitate its use in the insurance sector.

Did You Know?

“A recent survey by the Swiss Re Institute found that 80% of insurance industry leaders believe that blockchain technology will have a major impact on the industry in five years, which shows the urgency of the need to change.” — PwC Insurance Blockchain Survey 2023

Segmental Market Size

The use of the blockchain in insurance is currently experiencing significant growth, which is a result of the increasing demand for transparency and efficiency in insurance processes. There are several factors driving this growth, such as the growing demand for faster claim settlement and the need to improve the fraud prevention system. The regulatory trend towards data security and privacy has also pushed insurance companies to adopt the use of the blockchain in order to comply with these regulations and build customer trust.

At the moment, the introduction of blockchain technology in the insurance industry is moving from the pilot stage to the implementation stage. The most prominent examples are AIG and Allianz, which have used the technology for the settlement of claims and the issuance of insurance policies. These are the two main areas of application: smart contracts for claims automation and distributed ledgers for improving the data quality. The digital transformation, accelerated by the influenza pandemic of 1918–19, and the sustainable development goals are driving this development. The introduction of distributed ledgers and smart contracts is bringing the industry into the 21st century, enabling it to optimize its operations and provide better services to its customers.

Future Outlook

During the forecast period, the insurance industry will see an increase in the value of the market from $ 3.72 billion to $ 45 billion, with a CAGR of 25.4 percent. This growth will be driven by the growing demand for transparency, speed and security in the insurance industry. The share of blockchain solutions in the insurance industry is expected to reach about 30 percent in 2035, up from about 10 percent in 2024. The shift will be prompted by the need for real-time data sharing and faster claims processing, which blockchain can provide effectively.

This will have a further positive effect on the market. AI can improve the data analysis and modeling capabilities of insurance companies, enabling them to better assess the risks and design products to meet the needs of individual consumers. Moreover, the regulatory framework is evolving to accommodate the use of distributed ledgers, and governments and industry associations are increasingly aware of the potential of this technology for compliance and reporting. Meanwhile, the rise of decentralized finance (DeFi) and the growing demand for customer-oriented insurance models will also shape the market and force insurance companies to adopt distributed ledgers to remain competitive. In this new market, collaboration between insurance companies and technology companies will be critical to the success of distributed ledgers in the insurance industry.