Blockchain to Help Insurtech Soar to $235 Billion Industry
Not only is fintech getting lift thanks to blockchain. The lesser buzzword – insurtech – could enjoy many of the same benefits of blockchain, known best for underpinning the cryptocurrency Bitcoin.
Juniper Research posits in a paper entitled, “Fintech: Liberation or Liability ” that revenues for products in Insurtech, the insurance-technology industry, could skyrocket thanks not only to help from machine learning breakthroughs, but, also, blockchain technology.
Juniper, which often publishes research-friendly Bitcoin, states insurtech revenues could increase to $235 billion by 2021 thanks to the new technologies. That’s up 34% year-over-year compared $175 billion in 2016.
Juniper believes the increases will be fueled by investments in machine learning, which could, in turn, help providers better personalize products for insurees. Juniper also believes that investment in blockchain technologies enabling smart contracts will also drive the growth alongside better mobile applications in the industry.
According to the research, “investments in machine learning have enabled providers of car insurance to more accurately reflect car usage and driving behaviour in their quotes. As machine learning improves insurers’ ability to stratify drivers into risk groups.”
Juniper also foresees that “blockchain will accelerate insurers’ ability to personalize products with smart contracts/ smart policies adapting automatically to customers’ changing circumstances.” Insurers have many improvements to make, according to the report.
“Insurers need to be transparent with regards to how they use customer data,” According to research author, Michael Larner. “While consumers need to accept that in order to receive tailored policies that they will come under greater scrutiny. The prospect of saving money will be the overriding priority for the majority of consumers.”
Juniper Research often researches bitcoin and blockchain topics. The leading financial analyst firm predicted that by 2019 there would be 5 million Bitcoin users. The firm also spearheaded the narrative that a Donald Trump presidency would lead to higher Bitcoin prices.
Through the first six months of 2016, Juniper found late this summer, investments in blockchain technologies reached $300 million. And, finally, Juniper suggested smartphone companies consider Bitcoin to help the unbanked.
The news out of the Insurtech industry might mean even more job prospects for those learned in blockchain.
