Blockchain in insurance

Main article: InsurTech - Information technology and digitalization in insurance (cyber insurance and telematics data)

2024: Global Blockchain Insurance Market Reaches $1.86 Billion for the Year

In 2024, costs in the global blockchain market in the insurance sector amounted to $1.86 billion. About a third of this amount - $0.63 billion - fell on North America. This is stated in a study by Fortune Business Insights, the results of which were released on March 26, 2025.

Blockchain technology is a tamper-proof, clearly structured and decentralized system that assumes complete control and security of data storage through its distribution. The introduction of blockchain contributes to the digital transformation of the insurance sector, as well as provides increased security. Using distributed registers within document management, companies can identify errors and detect suspicious actions in a timely manner.

Blockchain systems provide a direct link between policyholders and insurers. This eliminates the need for unreliable third-party systems and/or time-consuming manual claims management operations. This reduces data processing costs. In addition, blockchain makes it possible to automate everyday tasks, for example, related to payments: this helps to accelerate operations and, as a result, increase customer satisfaction. Blockchain allows the application of new financial models that were previously too difficult to implement.

The regulations used to issue new policies, verify the identity of the applicant, approve or reject applications can be digitized and automated using smart contracts - this is a type of digital contract that is stored in a blockchain or distributed registry system. Smart contracts are activated automatically when the conditions programmed in them are met.

Fortune Business Insights analysts note that, despite the wide possibilities for using blockchain in the insurance sector, this market is in the early stages of development as of the beginning of 2025. Restraining factors are lack of standardization, high initial costs, and safety-related issues.

The market is segmented into application (solution) providers, bundling software providers, and infrastructure (protocol) providers. The largest share of revenue in 2024 was provided by the third of the listed areas - 37%. Applications brought about the same amount. The areas of application of blockchain are risk and compliance management, claim management, identity management and fraud detection, payments, smart contracts, etc. Claims management tools take the largest share due to the growing popularity of automated solutions. Geographically, North America dominates, but the Asia-Pacific region shows the highest growth rate. In Europe, there is also a steady positive trend. Among the significant players in the global industry are named:

• Consensys;
• IntellectEU;
• ChainThat;
• Etherisc;
• IBM;
• Guardtime;
• Teambrella;
• B3i;
• Tierion;
• Deloitte.

Overall, as noted, the observed trends indicate continued market expansion. In 2025, blockchain spending in insurance worldwide, according to experts, will rise to $2.96 billion. Fortune Business Insights analysts believe that in the future, the CAGR will be 53.7%. As a result, by 2032, costs could increase to $59.9 billion.^[1]

2020:11 insurance companies implement blockchain for instant exchange of customer data

In early April 2020, Taiwan's Financial Oversight Commission approved a trial of a new blockchain insurance project that should make it easier for policyholders. Eleven Taiwanese insurance companies have implemented this blockchain project to instantly exchange customer data. Read more here.