BLOCK CHAIN TECHNOLOGY FOR CLAIMS AND FRAUD PREVENTION IN NIGERIA’S INSURANCE SECTOR

This study investigates the role of blockchain technology in claims management and fraud prevention within Nigeria’s insurance sector. The study adopts a secondary data approach, relying on published reports, regulatory documents, and academic literature covering the period 2015–2024. Data were analyzed using descriptive and inferential techniques to evaluate trends in adoption, fraud prevention, claims efficiency, and operational challenges. The findings reveal that blockchain adoption in Nigeria’s insurance sector remains relatively low, with less than 30% of firms integrating blockchain or smart contracts as of 2024. Nevertheless, adoption has increased gradually, particularly following the introduction of the National Blockchain Policy (2023). Results further show that blockchain has enhanced transparency and reduced fraudulent claims by providing immutable records and enabling interfirm data sharing. Claims efficiency has also improved significantly, with blockchain-enabled firms reducing average processing times from 90–120 days to 30–45 days. Despite these benefits, adoption is constrained by infrastructural deficits, high costs, shortage of expertise, data privacy concerns, and regulatory uncertainty. The study concludes that blockchain technology offers significant opportunities to strengthen Nigeria’s insurance sector through fraud reduction, efficiency gains, and improved trust. However, realizing its full potential requires supportive regulation, investment in digital infrastructure, cost-sharing adoption models, and capacity building in technical expertise. The study is limited by its reliance on secondary data, which restricts the depth of empirical validation. Future research should integrate primary data collection and comparative studies across African markets to expand understanding of blockchain adoption in insurance