Role of DeFi Blockchain Technology In the Insurance Industry

Key Highlights:

  1. The global marketplace for the Blockchain insurance industry is expected to grow with a compound annual rate of 84.9 %, which is up to $1.39 billion by 2023 from $64.5 million in 2018.
  2. AS per the latest survey, it is estimated that Insurance fraud costs over $40B a year and is hard to distinguish using standard methods.
  3. According to the Federal Bureau of Investigation, blockchain technology can be used as a cross-industry for external and customer data that helps save over USD 40 billion per year to identity scams, damage reports, etc., in the insurance industry.                                                               Blockchain technology

"Insurance transactions are currently far too tedious and frictional. Blockchain technology has the potential to facilitate the desired development that is long overdue.

By: Lars Henneberg- Head of Risk and insurance Maersk

The author of the quote mentioned above has brilliantly explained the potential of blockchain technology is changing the insurance industry. Although there is a lot of information on the internet about it, it is good to understand how the insurance industry became the early adopter of this revolutionary technology. Let us get started!

Benefits of Blockchain to the insurance industry

Providing a single source of reality reduces complexity in business processes by facilitating and automating DLT networks with smart contracts.

Data reconciliation is cut down, accuracy is increased, and time spent locating information is reduced, allowing for greater clarity, productivity improvements, and cost savings across a supply chain. Furthermore, the shared industry activities and automation result in smoother processes and shorter overall cycle times.

Improvements in pace and consistency will lead to more positive customer interactions. Shortening the claims cycle through improved performance could lead to higher customer loyalty and retention. At the same time, quicker and better data access could allow insurers and their customers to communicate more smoothly. Reducing inefficiencies and costs across the value chain can eventually result in lower premiums.

Changing landscape of insurance industry via Blockchain

Blockchain services help insurers get the basic rights and help all players in the game when it comes to the insurance industry. Yes, you read it right— the decentralized revolutionary technology makes the process hassle-free equally for brokers, distributors, and agents. It also helps eliminate inconsistencies and inaccuracies, boosting the overall competence and precision across the complete value chain. It can ultimately diminish the data management costs links with it significantly.


In a nutshell, we can say that it is the right time for the insurance industry to adopt blockchain technology and build a network that guarantees fair and helpful outcomes for all stakeholders. Blockchain Development Services meet all the expectations of companies and customers in the tech ecosystem. This way, customers would trust their insurance managers more. Moreover, you can connect with the Grey MatterZ team of experts to get Decentralized Insurance Platform Development Services. For more info, stay tuned with us, and we will be back with some more interesting blogs soon!

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