A recent market report suggests the overall blockchain in insurance market size will likely grow from $64.50M in 2018 to $1.39B by 2023, at a CAGR of 84.90 percent. Insurers are beginning to acknowledge the potential of distributed ledger technology having diverse applications across the insurance value chain, especially in fraud detection, claims management, distribution and payments, and reinsurance. The technology has the potential to disrupt the financial services sector, with the amount of money being spent on the back and middle office operations.
At the Xceedance/ChainThat ‘Bermuda on Blockchain’ conference in June, Arun Balakrishnan, the chief executive officer of Xceedance said that the potential of blockchain could match that of email and the internet. “Blockchain is what email was back in 1994 or 1995, with web browsers just about to appear. Nobody could have imagined an Amazon back then, and the potential of this technology now is just as ground-breaking. We don’t know what the limits are yet,” said Balakrishnan.
The technology will facilitate collaboration across all stakeholders in the insurance ecosystem in a manner which has never been done before; starting with back office functions, all the way up to underwriting and claims. Progressive markets like Bermuda will act as incubators for talent and innovation in the blockchain space, providing a robust platform for the development of high-value solutions that can be rolled out in production quickly. Balakrishnan concurs, “We see Bermuda as the right place to embrace new technology, to create an ecosystem that works, and then replicate it across the world.”