IDEAS home Printed from https://ideas.repec.org/a/sae/ausman/v49y2024i2p290-312.html
   My bibliography  Save this article

Insurance in the Industry 4.0 environment: A literature review, synthesis, and research agenda

Author

Listed:
  • Ritu Srivastava
  • Anupama Prashar
  • S.Veena Iyer

    (Management Development Institute Gurgaon, Gurgaon, India)

  • Piyush Gotise

    (Symbiosis Institute of Business Management Pune, Symbiosis International (Deemed University), Pune, India)

Abstract

Commodification and thinning margins of insurers have increased competition in the industry. Accessing accurate data and its meaningful analysis is becoming vital. The rise of digital technologies driven by the fourth industrial revolution (Industry 4.0) enables this but also poses new risks to insurers. The literature is evolving, and most reviews have focused on technologies or insurance value chain aspects. This systematic review of research on digital technologies in insurance discusses their benefits, enablers and inhibitors with specific reference to Industry 4.0–driven changes and identifies opportunities and imminent changes in the industry. This article discusses directions for future research. JEL Classification: M150 IT Management

Suggested Citation

  • Ritu Srivastava & Anupama Prashar & S.Veena Iyer & Piyush Gotise, 2024. "Insurance in the Industry 4.0 environment: A literature review, synthesis, and research agenda," Australian Journal of Management, Australian School of Business, vol. 49(2), pages 290-312, May.
    • Handle: RePEc:sae:ausman:v:49:y:2024:i:2:p:290-312
    DOI: 10.1177/03128962221132458
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/03128962221132458
    Download Restriction: no
    File URL: https://libkey.io/10.1177/03128962221132458?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cao, Siqing & Lyu, Hanjia & Xu, Xian, 2020. "InsurTech development: Evidence from Chinese media reports," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    2. Aristodemos Pnevmatikakis & Stathis Kanavos & George Matikas & Konstantina Kostopoulou & Alfredo Cesario & Sofoklis Kyriazakos, 2021. "Risk Assessment for Personalized Health Insurance Based on Real-World Data," Risks, MDPI, vol. 9(3), pages 1-15, March.
    3. repec:eme:mfppss:mf-10-2018-0510 is not listed on IDEAS
    4. Fred L. Kitchens, 2009. "Financial implications of artificial Neural Networks in automobile insurance underwriting," International Journal of Electronic Finance, Inderscience Enterprises Ltd, vol. 3(3), pages 311-319.
    5. Alexander Bohnert & Albrecht Fritzsche & Shirley Gregor, 2019. "Digital agendas in the insurance industry: the importance of comprehensive approaches†," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 1-19, January.
    6. Martin Eling & Martin Lehmann, 2018. "The Impact of Digitalization on the Insurance Value Chain and the Insurability of Risks," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(3), pages 359-396, July.
    7. Parul Gupta & Sumedha Chauhan & M. P. Jaiswal, 2019. "Classification of Smart City Research - a Descriptive Literature Review and Future Research Agenda," Information Systems Frontiers, Springer, vol. 21(3), pages 661-685, June.
    8. Zhang Yu & Syed Abdul Rehman Khan & Muhammad Umar, 2022. "Circular economy practices and industry 4.0 technologies: A strategic move of automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 796-809, March.
    9. Rim Jemli & Nouri Chtourou & Rochdi Feki, 2010. "Insurability Challenges Under Uncertainty: An Attempt to Use the Artificial Neural Network for the Prediction of Losses from Natural Disasters," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(1), pages 43-60, March.
    10. Marta Ostrowska, 2021. "Does new technology put an end to policyholder risk declaration? The impact of digitalisation on insurance relationships," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(4), pages 573-592, October.
    11. Elinor Benami & Michael R. Carter, 2021. "Can digital technologies reshape rural microfinance? Implications for savings, credit, & insurance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1196-1220, December.
    12. Popovic, D. & Avis, C. & Byrne, M. & Cheung, C. & Donovan, M. & Flynn, Y. & Fothergill, C. & Hosseinzadeh, Z. & Lim, Z. & Shah, J., 2020. "Understanding blockchain for insurance use cases," British Actuarial Journal, Cambridge University Press, vol. 25, pages 1-1, January.
    13. Ranjan Pal & Ziyuan Huang & Xinlong Yin & Sergey Lototsky & Swades De & Sasu Tarkoma & Mingyan Liu & Jon Crowcroft & Nishanth Sastry, 2021. "Aggregate Cyber-Risk Management in the IoT Age: Cautionary Statistics for (Re)Insurers and Likes," Papers 2105.01792, arXiv.org.
    14. Richard Brophy, 2019. "Blockchain and insurance: a review for operations and regulation," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 28(2), pages 215-234, November.
    15. Kramer, Bert, 1997. "N.E.W.S.: A model for the evaluation of non-life insurance companies," European Journal of Operational Research, Elsevier, vol. 98(2), pages 419-430, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chang, Vincent Y.L., 2023. "Do InsurTech startups disrupt the insurance industry?," Finance Research Letters, Elsevier, vol. 57(C).
    2. Simon Fritzsch & Philipp Scharner & Gregor Weiß, 2021. "Estimating the relation between digitalization and the market value of insurers," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 88(3), pages 529-567, September.
    3. Raffaele Trequattrini & Matteo Palmaccio & Mario Turco & Alberto Manzari, 2024. "The contribution of blockchain technologies to anti‐corruption practices: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 33(1), pages 4-18, January.
    4. Yi Sun & Shihui Li & Rui Wang, 2023. "Fintech: from budding to explosion - an overview of the current state of research," Review of Managerial Science, Springer, vol. 17(3), pages 715-755, April.
    5. Martin Eling & Martin Lehmann & Philipp Schaper, 2022. "Optimal labor and capital utilization by financial firms: evidence from the German property and casualty insurance industry," Journal of Business Economics, Springer, vol. 92(5), pages 853-897, July.
    6. Sriyanto Sriyanto & Muhammad Imran & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & ?Dadang Yunus Lutfiansyach? & Parmono Parmono & Abdul Wahab Pathath & Mohd Khata Jabor, 2023. "Harnessing the Power of Globalization: A Study of the Association between Globalization, Transportation Energy, and Insurance and Financial Services in Europe and Central Asia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 453-461, March.
    7. Jorge Andrés-Sánchez & Jaume Gené-Albesa, 2024. "Not with the bot! The relevance of trust to explain the acceptance of chatbots by insurance customers," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    8. Quentin Stoeffler & Michael Carter & Catherine Guirkinger & Wouter Gelade, 2022. "The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso," The World Bank Economic Review, World Bank, vol. 36(1), pages 114-140.
    9. Alfiero, Simona & Battisti, Enrico & Ηadjielias, Elias, 2022. "Black box technology, usage-based insurance, and prediction of purchase behavior: Evidence from the auto insurance sector," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    10. Damminda Alahakoon & Rashmika Nawaratne & Yan Xu & Daswin Silva & Uthayasankar Sivarajah & Bhumika Gupta, 2023. "Self-Building Artificial Intelligence and Machine Learning to Empower Big Data Analytics in Smart Cities," Information Systems Frontiers, Springer, vol. 25(1), pages 221-240, February.
    11. Merello, Paloma & Barberá, Antonio & la Poza, Elena De, 2022. "Is the sustainability profile of FinTech companies a key driver of their value?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    12. Xu, Baochang & Li, Sihui & Afzal, Ayesha & Mirza, Nawazish & Zhang, Meng, 2022. "The impact of financial development on environmental sustainability: A European perspective," Resources Policy, Elsevier, vol. 78(C).
    13. Guilherme Luz Tortorella & Flavio S. Fogliatto & Michel J. Anzanello & Alejandro Mac Cawley Vergara & Roberto Vassolo & Jose Arturo Garza-Reyes, 2023. "Modeling the impact of industry 4.0 base technologies on the development of organizational learning capabilities," Operations Management Research, Springer, vol. 16(3), pages 1091-1104, September.
    14. 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.
    15. Antonella Cappiello, 2020. "The Digital (R)evolution of Insurance Business Models," American Journal of Economics and Business Administration, Science Publications, vol. 12(1), pages 1-13, January.
    16. Haider Mahmood & Alam Asadov & Muhammad Tanveer & Maham Furqan & Zhang Yu, 2022. "Impact of Oil Price, Economic Growth and Urbanization on CO 2 Emissions in GCC Countries: Asymmetry Analysis," Sustainability, MDPI, vol. 14(8), pages 1-21, April.
    17. Maik Dehnert, 2020. "Sustaining the current or pursuing the new: incumbent digital transformation strategies in the financial service industry," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1071-1113, November.
    18. Davide Lanfranchi & Laura Grassi, 2021. "Translating technological innovation into efficiency: the case of US public P&C insurance companies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 565-585, December.
    19. Meier, Samira & Rodriguez Gonzalez, Miguel & Kunze, Frederik, 2021. "The global financial crisis, the EMU sovereign debt crisis and international financial regulation: lessons from a systematic literature review," International Review of Law and Economics, Elsevier, vol. 65(C).
    20. D. V. Bryzgalov & A. A. Tsyganov, 2022. "Consumer Limitations on the Digitalization of the Insurance Market and Ways to Overcome Them," Studies on Russian Economic Development, Springer, vol. 33(5), pages 539-546, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ausman:v:49:y:2024:i:2:p:290-312. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.agsm.edu.au .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.