Blockchain in Insurance Market to Reach USD 15.0 Billion by 2031 | Strong 34.5% CAGR | North America Leads with 40% Share | Key Players: IBM, Oracle, SAP, Consensys, MetLife

Market Overview

The Global Blockchain in Insurance Market reached US$ 1.4 billion in 2023 and is expected to reach US$ 15.0 billion by 2031, growing at a CAGR of 34.5% during the forecast period 2024-2031. Blockchain technology is transforming the insurance industry by automating workflows, reducing administrative costs, and streamlining complex operations. Its inherent security, transparency, and immutability enable insurers to minimize fraud, prevent data manipulation, and enhance operational efficiency. Built on advanced cryptographic algorithms, blockchain ensures data integrity, authenticity, and confidentiality, strengthening cybersecurity frameworks and improving claims verification processes.

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Recent Developments:

✅ January 2024: Nayms launched the world's first institutional tokenized (re)insurance marketplace on Base, a secure Layer-2 Ethereum network. This launch enables investors to participate in blockchain-based, yield-generating (re)insurance opportunities as tokenized asset classes.

✅ November 2023: FidentiaX introduced a blockchain-powered insurance marketplace designed to facilitate secure and transparent policy trading, targeting enhanced liquidity in secondary life insurance markets.

✅ September 2023: B3i Services AG expanded its blockchain platform for reinsurance contract management, improving collaboration between insurers and reinsurers by automating contract validation and claims settlement.

✅ June 2023: IBM Corporation partnered with MetLife to implement blockchain solutions that improve the accuracy of policyholder data management, reducing errors and fraud in claims processing.

✅ March 2023: Guardtime and Ernst & Young (EY) collaborated to pilot a blockchain-based marine insurance platform, improving real-time data sharing and enhancing transparency across underwriters, brokers, and shipping clients.

Mergers & Acquisitions:

✅ March 2024: Aon plc acquired the technology assets and intellectual property of Humn.ai, an AI-powered insurance platform, enhancing its digital insurance capabilities and expanding integration of blockchain-based solutions for secure data management and claims automation.

✅ December 2024: A global insurance consortium acquired a leading blockchain infrastructure provider specializing in smart contract automation and fraud prevention tools, aiming to scale blockchain adoption across underwriting and reinsurance operations.

✅ September 2024: A European reinsurer completed the acquisition of a blockchain-driven InsurTech firm to strengthen its distributed ledger ecosystem for transparent policy management and streamlined claims processing.

✅ May 2024: A major North American insurer acquired a blockchain analytics company to enhance data traceability, cybersecurity, and fraud detection within its insurance product portfolio.

✅ 2023-2025 (Ongoing): The market continues to witness strategic mergers, joint ventures, and equity investments between insurers and blockchain startups focused on digital policy issuance, automated settlements, and parametric insurance models, underscoring consolidation within the blockchain insurance ecosystem.

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Key Players:
• IBM Corporation - Holds a 15% share, driven by its enterprise-grade blockchain platforms used for secure data management, smart contracts, and automated claims verification in the insurance sector.

• Oracle Corporation - Holds a 12% share, offering scalable blockchain infrastructure solutions that enable policy transparency, fraud prevention, and improved customer data security.

• SAP SE - Holds a 10% share, leveraging its integrated blockchain modules within ERP systems to support automated policy issuance and real-time claims management.

• Consensys - Holds an 8% share, specializing in Ethereum-based blockchain applications and smart contract solutions for decentralized insurance platforms.

• Bitfury - Holds a 7% share, focusing on blockchain infrastructure for fraud prevention and secure data exchange in insurance and financial services.

• MetLife - Holds a 10% share, actively implementing blockchain for digital claims automation and policyholder data integrity across its global insurance operations.

• Mapfre S.A. - Holds a 7% share, expanding blockchain adoption in underwriting and reinsurance to improve risk assessment and data traceability.

• Max Life Insurance - Holds a 6% share, integrating blockchain-based solutions to enhance transparency and streamline the claims settlement process.

• Auxesis Group - Holds a 5% share, developing permissioned blockchain platforms for Indian insurance companies, enabling secure policy verification and data management.

• KM Business Information US, Inc. - Holds a 5% share, providing blockchain-driven data analytics and reporting tools to support insurers in fraud detection and regulatory compliance.

Market Segmentation:

➥By component, the solution segment dominates the global blockchain in insurance market with a 65% share, driven by the growing adoption of blockchain platforms for smart contracts, automated claims management, and transparent policy administration. Insurers are increasingly implementing integrated blockchain solutions to enhance efficiency and minimize administrative costs. The services segment accounts for the remaining 35%, including consulting, integration, and support services that assist insurers in deploying and managing blockchain infrastructures.

➥By type, the private blockchain segment leads with a 60% share, as insurers prefer permissioned networks for secure data sharing, regulatory compliance, and confidentiality in underwriting and claims operations. The public blockchain segment holds a 40% share, gaining traction through decentralized insurance models and consortium-based frameworks that emphasize transparency and interoperability among stakeholders.

➥By enterprise size, large enterprises command a 70% share, driven by significant investments from established insurers and reinsurers in blockchain technologies to enhance operational efficiency, fraud detection, and governance. Small and medium-sized enterprises (SMEs) represent 30% of the market, increasingly leveraging blockchain to introduce innovative, cost-effective policy management and automated settlement solutions.

➥By application, Governance, Risk, and Compliance (GRC) management leads with a 30% share, as blockchain improves traceability, audit transparency, and regulatory adherence. Death and claims management holds a 25% share, benefiting from blockchain-enabled smart contracts that ensure faster, error-free claim settlements. Identity management and fraud detection also contribute 25%, as blockchain's immutability safeguards against identity theft and false claims. The payments segment accounts for 20%, utilizing blockchain to streamline cross-border transactions, premium payments, and reinsurance settlements by reducing processing time and transaction costs.

Regional Insights:

North America dominates the global blockchain in insurance market with a 40% share (US$ 560 million in 2024), driven by the strong presence of major technology providers and leading insurers integrating blockchain into policy management, claims processing, and fraud prevention. The U.S. is at the forefront due to early adoption of InsurTech innovations and favorable regulatory frameworks that encourage digital transformation within the insurance sector. Growing investments in blockchain-based data security and automated smart contracts continue to strengthen North America's leadership in this space.

Europe holds a 30% share (US$ 420 million in 2024), supported by the region's advanced insurance infrastructure and strong regulatory emphasis on transparency and data protection under frameworks such as GDPR. Countries such as Germany, the U.K., and France are leading the adoption of blockchain to streamline underwriting, enhance fraud detection, and enable cross-border reinsurance settlements. Collaborative consortiums and industry alliances, such as B3i (Blockchain Insurance Industry Initiative), are further accelerating blockchain integration across Europe's insurance value chain.

Asia-Pacific accounts for 20% (US$ 280 million in 2024) and is projected to be the fastest-growing region, with a CAGR exceeding 38% during the forecast period. The growth is fueled by the rapid digitalization of insurance services in China, India, Japan, and South Korea, along with expanding government initiatives supporting blockchain for secure digital identity and data management. Increasing InsurTech investments and partnerships between blockchain startups and insurance providers are further boosting market penetration across the region.

Latin America, the Middle East & Africa (LAMEA) contribute 10% (US$ 140 million in 2024), with countries such as Brazil, the UAE, and South Africa emerging as early adopters of blockchain in insurance. Market growth in these regions is supported by improving financial inclusion, rising awareness of fraud prevention technologies, and efforts to modernize insurance infrastructure through blockchain-based digital policy issuance and claims automation.

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Market Dynamics:

Driver: Technological Advancements
Technological innovation is a major catalyst driving the growth of blockchain adoption in the insurance sector. Insurers are leveraging blockchain to design new, customer-centric products and services that improve transparency, efficiency, and trust. The integration of digital identities and smart contracts enables seamless, automated claim settlements and policy issuance, reducing human error and administrative burdens. By streamlining underwriting and claims management, blockchain technology enhances operational efficiency, resulting in lower costs, improved risk assessment, and faster decision-making.

Furthermore, blockchain ensures data integrity, privacy, and cybersecurity within the insurance value chain. Its immutable records safeguard sensitive customer data and transaction histories against unauthorized access or tampering. Through shared digital ledgers, insurers can securely access verified health, employment, and asset information to accurately determine policyholder risks and validate losses. This secure, transparent data exchange fosters trust among insurers, reinsurers, and customers, positioning blockchain as a foundational technology for next-generation insurance operations.

Driver: Growing Number of Fraudulent Insurance Claims
The rise in fraudulent insurance claims has accelerated the demand for blockchain technology, as insurers seek to strengthen fraud detection and prevention mechanisms. Blockchain's immutability and transparency create an auditable trail for every claim-related transaction, making data manipulation nearly impossible. Insurers can deploy real-time monitoring systems and smart contracts to automatically verify claim authenticity, identify anomalies, and reduce fraudulent activities.

The traceability of blockchain ensures that every claim submission, adjustment, and settlement is securely recorded and visible to authorized stakeholders, promoting accountability and deterring dishonest behavior. According to Code F Solutions Private Limited, in India, approximately 15% of annual insurance claims are fraudulent, while only 80% are genuine. Such statistics highlight the urgent need for robust blockchain-based verification systems to minimize financial losses and enhance operational integrity.

Restraint: High Initial Cost
Despite its benefits, the high initial implementation cost of blockchain technology remains a major restraint to market growth. Developing and integrating blockchain systems within existing insurance infrastructures involves significant expenditures on software development, hardware infrastructure, cybersecurity, and employee training. For small and mid-sized insurers, these upfront investments can be prohibitive.

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