Decentralized Insurance Market Report 2026

The decentralized insurance market size has grown exponentially in recent years. It will grow from $3.5 billion in 2025 to $5.2 billion in 2026 at a compound annual growth rate (CAGR) of 48.6%. The growth in the historic period can be attributed to emergence of decentralized finance ecosystems, increasing incidents of smart contract vulnerabilities, early adoption of blockchain-based financial services, limitations of traditional insurance intermediaries, growth of crypto-native risk exposure.

The decentralized insurance market size is expected to see exponential growth in the next few years. It will grow to $25.02 billion in 2030 at a compound annual growth rate (CAGR) of 48.1%. The growth in the forecast period can be attributed to increasing regulatory clarity for digital assets, rising institutional participation in defi insurance, expansion of cross-chain insurance coverage, growing demand for automated and instant claims processing, advancement of decentralized governance models. Major trends in the forecast period include increasing adoption of smart contract-based insurance models, rising deployment of peer-to-peer risk sharing protocols, growing integration of automated claims settlement mechanisms, expansion of protocol-level coverage solutions, enhanced focus on transparent and trustless insurance frameworks.

The growing adoption of cryptocurrencies is expected to drive the expansion of the decentralized insurance market. Cryptocurrencies are digital or virtual currencies that rely on cryptography for secure transactions and operate on decentralized networks, typically built on blockchain technology. The rise in cryptocurrency adoption is attributed to the financial freedom they offer, enabling users to transact without relying on traditional banks or government control. Decentralized insurance in the crypto space provides transparent, trustless protection against blockchain-related risks through smart contracts and community-funded pools. For example, in November 2024, the Financial Conduct Authority, a UK-based regulatory body, reported that 12% of UK adults own cryptocurrency, up from 10% previously, with awareness rising from 91% to 93%. The average value of crypto holdings also grew from $2,000 (£1,595) to $2,300 (£1,842). This surge in cryptocurrency adoption is fueling the growth of the decentralized insurance market.

Key players in the decentralized insurance market are focusing on developing innovative solutions, such as risk management infrastructure layers, to improve efficiency and transparency. These layers enable decentralized insurance by assessing, pricing, and mitigating risks using data analytics and smart contract automation. For example, in March 2023, Nexus Mutual, a UK-based decentralized insurance provider, launched Nexus Mutual v2 on the Ethereum mainnet. This upgrade introduced a modular system that allows users to create and manage their own mutuals for different risk types, including smart contract and custody risk. The new version supports permissionless product development, cross-chain functionality, and better capital efficiency, enabling broader participation in decentralized risk-sharing. Nexus Mutual v2 aims to drive the growth of blockchain-based insurance by fostering innovation and community-driven insurance models.

In August 2023, InShare, a UK-based provider of alternative risk transfer and mutual insurance solutions, teamed up with Nexus Mutual to utilize on-chain capital to cover excess losses for small independent retail businesses in the UK. This partnership allows Nexus Mutual to offer discretionary excess and aggregate risk transfer support to The Retail Mutual, which protects over 5,000 small retail businesses, including shopkeepers, from risks including fire, theft, and accidental damage. Nexus Mutual is a UK-based decentralized insurance provider, specializes in offering smart contract coverage to mitigate risks within decentralized finance (DeFi) platforms.

Major companies operating in the decentralized insurance market are Nexus Mutual, Etherisc, Tidal Finance, Neptune Mutual, Unslashed Finance, Bridge Mutual, InsurAce, Risk Harbor, Solace, Cover Protocol, Sherlock, Opyn, Bright Union, OpenCover, Armor, Nsure Network, Uno Re, Yinsure, VouchForMe, Ease.

North America was the largest region in the decentralized insurance market in 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the decentralized insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the decentralized insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The decentralized insurance market consists of revenues earned by entities providing services such as blockchain-based insurance solutions, smart contract-driven policy management, peer-to-peer risk sharing, and automated claims processing. The market value includes the value of related goods sold by the service provider or included within the service offering. The decentralized insurance market also includes sales of decentralized applications (dApps), blockchain infrastructure, tokenized coverage platforms, governance tools, and crypto wallet integrations essential for facilitating decentralized risk management and claim execution. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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