0

Decentralized Insurance Market Expected to Reach $135.6 Billion by 2032—Allied Market Research

 
2022
Decentralized Insurance Market

Report Code : A74837

quote The decentralized insurance market has grown rapidly in recent years owing to increased demand and growing interest from institutional investors. However, regulatory uncertainty and lack of clarity around the legal and regulatory framework affect the growth of the market during the forecast period. quote

Kanhaiya Ramesh Kathoke - Research Analyst
BFSI at Allied Market Research

Get 20% Free Customization In This Report
Follow us on Social Media:       
 

According to a new report published by Allied Market Research, titled, “Decentralized Insurance Market," The decentralized insurance market was valued at $1.4 billion in 2022, and is estimated to reach $135.6 billion by 2032, growing at a CAGR of 58.5% from 2023 to 2032.

Decentralized finance insurance provides several benefits over traditional insurance, including greater transparency, lower costs, and increased accessibility. It also enables individuals and businesses to create customized insurance policies that better suit their specific needs, as well as provide faster payouts and more efficient claims processing. Further, decentralized insurance primarily focused on niche or alternative markets that were underserved by traditional insurance providers. However, there is a growing trend toward expanding coverage to more mainstream areas, including property, health, travel, and more. This expansion is driven by the desire to offer a wider range of insurance options to users.

Furthermore, a growth in the number of partnerships and collaborations between decentralized insurance crypto providers and other blockchain-based businesses, such as DeFi platforms and NFT marketplaces fuels the growth of decentralized insurance market. Furthermore, the global decentralized insurance market trends are in its developing phase and exhibits high growth potential due to rise in adoption of the decentralized insurance platform. In addition, an increase in product launches is expected to promote decentralized insurance market growth in future.

For instance, in January 2022, Open-source, decentralized insurance protocol and ecosystem Etherisc launched a blockchain-backed insurance application that may autonomously issue policies and execute payouts for travel delays and cancellations. The open-source technology accepts cryptocurrencies and may autonomously issue policies and execute payouts for travel delays to insurance policyholders. Furthermore, in May 2021, Crypto derivatives protocol Opium and decentralized finance (DeFi) platform UMA announced a partnership to provide insurance products for SpaceX flights. The partnership was projected to witness Opium plug into Optimistic Oracle product of UMA to provide financial derivatives for hedging risks related to SpaceX flights.

The derivatives were anticipated to work as binary options contracts, allowing users to purchase insurance against a failed launch on SpaceX, the Elon Musk-founded space-transportation services company. On the basis of end user, the individual segment acquired a major market share in 2022. This is attributed to the fact that decentralized insurance is becoming more accessible to individuals as new platforms and services emerge. This has created more opportunities for individuals to secure low-priced insurance plans outside of traditional insurance providers.

Moreover, in May 2021, Opium, UMA launched decentralized insurance for SpaceX flights. It will offer a DeFi derivatives contract allowing users to hedge against the risk of a failed SpaceX launch. Further, the partnership will see Opium plug into UMA's Optimistic Oracle product to provide financial derivatives for hedging risks related to SpaceX flights.

On the basis of region, Asia-Pacific is expected to grow significantly in the decentralized insurance market during the forecast period. The growth of the decentralized insurance market in Asia-Pacific is being driven by factors such as the adoption of blockchain technology, increase in demand for transparency and accessibility in insurance products, and the growth in popularity of DeFi platforms. Furthermore, the adoption of blockchain technology has opened up new possibilities for the insurance industry in the Asia-Pacific region. It enables transparent and secure record-keeping, making it an ideal tool for insurance companies to manage claims, policies, and customer data.

The pandemic has accelerated the adoption of decentralized insurance in some areas, while also highlighting the need for ongoing innovation and development to address the challenges of a rapidly changing world. Furthermore, the economic impacts of the pandemic have led to increased financial instability, which can make it more difficult for decentralized insurance platforms to attract and retain users. The lack of regulatory oversight in the decentralized insurance market can also make it more challenging to establish trust and credibility with potential users. Thus, the pandemic had a moderate impact on decentralized insurance industry.

KEY FINDINGS OF THE STUDY

  • By type, the non-life insurance segment accounted for the highest decentralized insurance market share, in terms of revenue in 2022.
  • On the basis of end user, the individuals segment is expected to exhibit the fastest growth rate during the forecast period in the decentralized insurance market.
  • Region wise, North America generated the highest revenue of decentralized insurance market size in 2022.                                                                             The key players operating in the decentralized insurance market analysis include Nexus Mutual, Unslashed Finance, Neptune Mutual, Etherisc, InsurAce, Bridge Mutual, Tidal Finance, Copper, Evertas, and Opyn. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Need More Information

pr-det-talk Talk to David (Europe)

pr-det-talk Talk to Sona Padman (Americas)

5933 NE Win Sivers Drive #205,
Portland, OR 97220 United States

pr-det-phone Toll Free: +1-800-792-5285

pr-det-phone UK: +44-845-528-1300

pr-det-phone Hong Kong: +852-301-84916

pr-det-phone India (Pune): +91 2066346060

pr-det-phone Fax: +1(855) 550-5975

pr-det-phone help@alliedmarketresearch.com

 

For Media Inquiries, Please Contact

Allied Market Research
Contact Toll Free: +1-800-792-5285
Drop us an email at
media@alliedmarketresearch.com

Looking for Customization?

 Customization Request

Have a Question?

 Speak with Analyst

Any Confusion?

 Inquire Before Buying

Have a glance of the Report

  Request Free Sample
 
 

First time buyer?
Check offers and discount on this report
To get this report

Click Here
 
 

quote Decentralized Insurance Market by Type (Life Insurance, Non-life Insurance), by End User (Businesses, Individuals): Global Opportunity Analysis and Industry Forecast, 2023-2032 quote

View Report
 
 

Avenue: Entire Library membership of Allied Market Research Reports at your disposal

  • Avenue is an innovative subscription-based online report database.
  • Avail an online access to the entire library of syndicated reports on more than 2,000 niche industries and company profiles on more than 12,000 firms across 11 domains.
  • A cost-effective model tailored for entrepreneurs, investors, and students & researchers at universities.
  • Request customizations, suggest new reports, and avail analyst support as per your requirements.
  • Get an access to the library of reports at any time from any device and anywhere.

 
 

WHY ALLIED MARKET RESEARCH?

INFLALLIBLE METHODOLOGY

To ensure high-level data integrity, accurate analysis, and impeccable forecasts

ANALYST SUPPORT

For complete satisfaction

CUSTOMIZATION

On-demand customization of scope of the report to exactly meet your needs

TARGETED MARKET VIEW

Targeted market view to provide pertinent information and save time of readers

 

Featured Readings

 
rep-img

Published Date Feb 2024

Solid State Relay Market

Download Sample
rep-img

Published Date Feb 2024

Alternators Market

Download Sample

Buy Full Version
"Decentralized Insurance Market"
Purchase Enquiry

Get fresh content delivered

Get insights on topics that are crucial for your business. Stay abreast of your interest areas.

Get Industry Data Alerts

Why Allied Market Research?

Infallible Methodology

To ensure high-level data integrity, accurate analysis, and impeccable forecasts

Analyst Support

For complete satisfaction

Customization

On-demand customization of the scope of the report to exactly meet your needs

TARGETED MARKET VIEW

Targeted market view to provide pertinent information and save the time of readers