Blockchain coming for insurance with cost savings

A new report by Juniper Research spells out a new future for claims administration, with blockchain-based insurance claims to hit $10 billion in saved costs globally, up from $1.1 billion in 2021.

The report, Blockchaina in Financial Services: Key Opportunities, Vendor Strategies and Market Forecasts 2021-2030, says blockchain will result in cost savings across all processes. Insurance heavy markets like the United States will benefit particularly, with predictions by Juniper Research that premium issuance and management savings will be particularly high.

Health insurance is another key area for savings, with the sector being resource-intensive. Blockchain can replicate inefficiencies in processes. While the paper’s author, Susannah Hampton, said insurance companies have been shy to modernise, the benefits of blockchain solutions will eventually be difficult to ignore.

“Insurers must address barriers to implementing blockchain technology through investment and partnerships,” she added.

“Any blockchain solutions deployed must integrate into existing underwriting and claims management platforms and offer an increased value proposition beyond what is already possible.”