Blockchain Technology Adoption for Life Insurance: Risk, Readiness, and Relevance

Isyrofi Susianto; Setiadi Yazid; Geri Yesa Ermawan

doi:10.59395/ijadis.v6i3.1479

Authors

Isyrofi Susianto Faculty of Computer Science, Universitas Indonesia, Indonesia
Setiadi Yazid Faculty of Computer Science, Universitas Indonesia, Indonesia
Geri Yesa Ermawan Faculty of Computer Science, Universitas Indonesia, Indonesia

DOI:

https://doi.org/10.59395/ijadis.v6i3.1479

Keywords:

Blockchain Adoption, Life Insurance, Technology Adoption, Claim Automation, Smart Contract, Systematic Literature Review

Abstract

Blockchain technology has been widely discussed as a transformative solution for operational inefficiencies in the insurance sector, particularly in automating claims processing, enhancing transparency, and ensuring data immutability. However, adoption within the life insurance industry remains limited. This paper investigates the barriers and potential of blockchain implementation in life insurance through a mapping analysis using the People–Process–Technology (PPT) framework into risk, readiness, and relevance. The research identifies strategic misalignment with existing revenue models, regulatory compliance frictions, and organizational readiness gaps as key obstacles. A five-year cost comparison indicates that while blockchain incurs higher initial investment, it delivers lower operational costs in the long run—particularly in high-volume, deterministic insurance products. Architectural comparisons further highlight the operational advantages and integration challenges of blockchain-based systems over traditional IT infrastructures. The study concludes that although blockchain holds significant promise, its adoption depends on targeted use case selection, organizational transformation, and regulatory alignment.

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