The savings on operating costs of the insurance sector generated by blockchain technologies in three years is expected to be of

A new report by Juniper Research has established that the blockchain-based insurance market will transform the claims administration.

Using blokchain technology will allow the insurance industry to save on operating costs $10 billion globally costs by 2024.

The Juniper Research report estimates that by the end of the year the sector has saved 1.1 billion dollars.

Insurance providers will increasingly exploit the benefits of greater transparency of processes and real-time data sharing: blockchain network data is accessible to all parties; avoiding duplication of efforts and minimising fraud.

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The insurance market will see significant increases in total cost savings through the use of blockchain for emission and premium management between 2021 and 2024; representing more than half of all global cost savings by 2024.

Insurance is a complex business area, characterised by often inefficient data silos, and the blockchain offers critical advantages by allowing fair access to data and minimising fraud through increased data transparency.

As a significant market for health insurance, the United States will see the number of blockchain claims rising from 2 million in 2021 to 24 million by 2024.

Health insurance is a resource-intensive area and the blockchain’s ability to replace inefficient processes and increase the interoperability of the system will be the key to its success.

The Juniper Research report found that, due to the clear benefits for insurance, the obstacles to implementation will begin to be overcome by allowing blockchain networks to proliferate.

In the past, insurers have been reluctant to modernise existing processes and currently there are no global standards on blockchain networks.

According to the research author, Susannah Hampton, as a note from Juniper Research, insurers face obstacles to the implementation of blockchain technology with investments and partnerships. Any blockchain solution implemented must be integrated into existing subscription and claim management platforms and offer a higher value proposal beyond what you can already do and have.

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