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A framework for the evaluation of InsurTech

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  • Xian Xu
  • Peter Zweifel

Abstract

In recent years, the insurance industry has known rapid development and application of new technologies, leading to the emergence of a large number of innovative products. This constitutes a challenge for stakeholders ranging from consumers, management, investors, and on to regulators, who need to evaluate these so‐called InsurTech innovations. This study applies a modified Delphi method in combination with the Analytical Hierarchy Process of Saaty to first provide the weightings of 42 individual indicators for aggregation to 9 subdimensions, among which degree of innovation, size of potential user base, and delivery of services turn out to be the most important. These subdimensions are in turn aggregated into three main dimensions, (i) management and operations, (ii) level of technology, and (iii) user experience, which are found to have equal weight. In conclusion, this paper proposes a transparent way of evaluating InsurTech innovations that also may provide guidance for their future development.

Suggested Citation

  • Xian Xu & Peter Zweifel, 2020. "A framework for the evaluation of InsurTech," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 23(4), pages 305-329, December.
    • Handle: RePEc:bla:rmgtin:v:23:y:2020:i:4:p:305-329
    DOI: 10.1111/rmir.12161
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    Cited by:

    1. Iván Sosa Gómez & Óscar Montes Pineda, 2023. "What is an InsurTech? A scientific approach for defining the term," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 26(2), pages 125-173, July.
    2. Iván Sosa & Óscar Montes, 2022. "Understanding the InsurTech dynamics in the transformation of the insurance sector," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(1), pages 35-68, April.
    3. Zhiyu Quan & Changyue Hu & Panyi Dong & Emiliano A. Valdez, 2024. "Improving Business Insurance Loss Models by Leveraging InsurTech Innovation," Papers 2401.16723, arXiv.org.
    4. Patty Duijm & Ilke Van Beveren, 2022. "Product diversification as a performance boosting strategy? Drivers and impact of diversification strategies in the property‐liability insurance industry," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(3), pages 303-328, September.
    5. Sánchez, Marisa A., 2022. "A multi-level perspective on financial technology transitions," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    6. Gupta, Somya & Ghardallou, Wafa & Pandey, Dharen Kumar & Sahu, Ganesh P., 2022. "Artificial intelligence adoption in the insurance industry: Evidence using the technology–organization–environment framework," Research in International Business and Finance, Elsevier, vol. 63(C).

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