Assessment of the Factors Influencing Adoption of Blockchain Technology in Insurance Sector

Abstract

This study aimed to assess factors influencing adoption of blockchain technology in insurance sector in Tanzania, using Reliance Insurance Company – Arusha as case study. More specifically this study sought to identify factors influencing the adoption of blockchain technology, to investigate challenges hindering the adoption of blockchain technology and to propose mechanism that will address challenges hindering the adoption of blockchain technology in insurance sector. The systems theory and diffusion of innovations theory were employed in this study. This study adopted a descriptive research design and a mixed-research approach was utilized. The population of the study was the 121 employees of Reliance Insurance Company. The sample size consisted of 93 participants, selected using purposive and simple random sampling techniques. Primary data was collected through questionnaires and interviews. Quantitative data was analyzed using descriptive statistics aided by SPSS, while qualitative data used thematic analysis. The study found that technological infrastructure readiness, awareness and understanding, regulatory surrounding and collaborative efforts with stakeholders facilitate the adoption of blockchain. The study revealed that lack of a standardized framework, concerns regarding data privacy and ownership, limited scalability and processing speed hence inadequate awareness and understanding hinders the adoption of blockchain technology. The study suggests the development of educational programs and training workshops, encouraging public-private partnerships hence implementing robust data privacy to address challenges hindering the adoption of blockchain technology. Future studies should assess the sustainability impact of blockchain adoption to uncover its ecological potential. Simultaneously, investigating user acceptance and trust in blockchain will reveal the balance between innovation and human factors, essential for a thriving blockchain ecosystem.