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Understanding the InsurTech dynamics in the transformation of the insurance sector

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  • Iván Sosa
  • Óscar Montes

Abstract

InsurTechs have transformed the insurance sector by becoming a fundamental role in leveraging technology to respond to business and costumers needs, driving solutions based on the availability of new data sources, the interconnectivity among actors, or even access to new possibilities in terms of risk hedging. InsurTechs can be seen as innovations occurring simultaneously that have disrupted, accelerated, and enhanced the transformation of the insurance sector. However, to date, there is a significant research gap to understand how InsurTechs have been responsible for this transformation. For this purpose, qualitative research has been carried out, through the analysis of 150 InsurTechs, based on grounded theory methodology. This study has a threefold objective. First, to identify what has driven InsurTechs; second, to discover what types of innovations have emerged, and third, to understand the dynamics of InsurTech. Findings have identified five InsurTech driving capabilities that have been instrumental in boosting innovations in the insurance sector. These five capabilities suggest 15 types of innovations that have transformed the insurance sector. Finally, these 15 innovations suggest three waves that provide insights for understanding how InsurTech Dynamics has transformed the traditional structure of the insurance sector leading to a dynamic user‐centric ecosystem.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:rmgtin:v:25:y:2022:i:1:p:35-68
    DOI: 10.1111/rmir.12203
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    References listed on IDEAS

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    6. Lee, In & Shin, Yong Jae, 2018. "Fintech: Ecosystem, business models, investment decisions, and challenges," Business Horizons, Elsevier, vol. 61(1), pages 35-46.
    7. Braun, Alexander & Schreiber, Florian, 2017. "The Current InsurTech Landscape: Business Models and Disruptive Potential," I.VW HSG Schriftenreihe, University of St.Gallen, Institute of Insurance Economics (I.VW-HSG), volume 62, number 62.
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    Cited by:

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    3. Chang, Vincent Y.L., 2023. "Do InsurTech startups disrupt the insurance industry?," Finance Research Letters, Elsevier, vol. 57(C).

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