Blockchain-based insurance coverage anticipated to remodel claims administration

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Blockchain-based insurance is poised to transform claims management, according to a new report from Juniper Research. Specifically, researchers expect blockchain-based insurance claims to top global cost savings of over $10 billion by 2024, up from $1.1 billion in 2021.

The report, titled “Blockchain in Financial Services: Key Opportunities, Vendor Strategies & Market Forecasts 2021-2030,” says the insurance industry should realize cost savings by using blockchain across all processes. This is especially true in insurance-heavy markets like the US, where Juniper Research predicts that total cost savings from using blockchain to issue and manage awards will skyrocket between 2021 and 2024, accounting for more than half of total cost savings globally until 2024.

Researchers suggested health insurance as a key area for savings due to the resource-intensive nature of the sector and blockchain’s ability to replace inefficient processes. The report suggests that the US, as a large market for health insurance, will see the number of claims processed via blockchain grow from 2 million in 2021 to 24 million in 2024.

Research author Susannah Hampton said that insurers have been reluctant to modernize processes, but the benefits to insurance will eventually overcome the barriers to implementing blockchain solutions and allow blockchain insurance to grow.

“Insurers need to remove barriers to implementing blockchain technology through investments and partnerships,” she added. “Any blockchain solutions deployed must integrate with existing underwriting and claims management platforms and provide value beyond what is already possible.”

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