Turning disruptive power of Blockchain in the insurance market into innovative opportunities (2211.05830v2)

Abstract: Insurance has been around for more than centuries. This risk mitigation strategy has been utilized in maritime commerce as early thousand years ago, where Asian merchant seafarers were pooling together their wares in collective funds to pay for damages of individual capsized ship. In 2018, insurance industry made up 6 percent of global GDP while financial industry amounted to about 7 to 9 percent of the US GDP.2020, the industry net premiums totaled USD1.28 trillion, by 2030, blockchain insurance market value is estimated to reach USD39.5 Billion. Despite of growing reform, the insurance market is dominated by intermediaries assisting people to match their insurance needs. While many predictions focused on artificial intelligence, cloud computing, blockchain stands out as the most disruptive technology that can change the driving forces underlying the global economy. This paper presents a blockchain business use case and how insurance industry can turn blockchain disruptive power into innovative opportunities.