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Technology investments and firm performance under the wave of InsurTech

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  • Vincent Y. L. Chang

    (Feng Chia University)

Abstract

This study explores how the technology investments of a sample of U.S. property-liability insurers affected their performance during the InsurTech wave. The critical question is whether insurers' InsurTech-oriented investments strengthen their competitive advantages, resulting in improved firm performance. This study reveals that insurers' InsurTech-oriented investments have a significant detrimental influence on their short-term performance. Intriguingly, empirical findings indicate that insurers' InsurTech-oriented investments have a strong positive relationship with long-term performance, suggesting that the notion of time lag and cumulative impacts is justified. The study provides new insight into the effect insurers' InsurTech-oriented investments have on their performance.

Suggested Citation

  • Vincent Y. L. Chang, 2024. "Technology investments and firm performance under the wave of InsurTech," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 49(3), pages 501-536, July.
    • Handle: RePEc:pal:gpprii:v:49:y:2024:i:3:d:10.1057_s41288-023-00286-w
    DOI: 10.1057/s41288-023-00286-w
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    References listed on IDEAS

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