Well-known market research organization: Blockchain + insurtech creates a $235 billion market

The passengers riding the blockchain are not just ‘financial technology (Fintech)’, but also a hot word in the insurance industry - ‘Insurtech’ - which can also enjoy the benefits brought by blockchain.

As Juniper Research postulated in its Financial Technology: Liberation or Responsibility report, revenues from insurance technology products could soar, not only due to breakthroughs in machine learning but also thanks to blockchain technology.

Juniper, a research firm that frequently publishes reports on bitcoin, said that insurance technology revenue could grow to $235 billion by 2021, up 34% from $175 billion in 2016, thanks to new technologies.

Juniper believes that this growth will be driven by investments in machine learning, which in turn can help insurance providers better personalize insurance products. Juniper also believes that investments in blockchain technology that can enable smart contracts can also drive the development of better mobile applications in the insurance industry.

According to Juniper's research report,

“Investments in machine learning are already enabling auto insurers to more accurately reflect vehicle usage and driver behavior in the quotation process. Machine learning is improving insurers’ ability to rate drivers as dangerous.”

Juniper also predicts that

“Blockchain will accelerate insurers’ ability to personalize insurance products as smart contracts/smart policies are automatically applied to customers’ changing circumstances.

According to the report, insurers have a lot of room for improvement. Report author Michael Larner said:

“Insurers need to be transparent about how they use customer data. Customers need to be subject to rigorous scrutiny to get tailored insurance solutions. And most customers will put saving money first.”

Juniper frequently conducts research related to Bitcoin and blockchain topics. The leading financial analysis firm predicts that Bitcoin users will reach 5 million by 2019. The company previously published a research analysis report, 'A Trump presidency will lead to a higher Bitcoin price.'

Juniper Research found that blockchain technology investment reached $300 million in the first half of 2016. And finally, Juniper suggested that smartphone companies consider using Bitcoin to help those who cannot access banking services. This news leaked out of the insurance industry will mean that there will be a lot of jobs for those who learn blockchain technology.