Balancing Innovation and Profitability: Technological Diversification in Iran’s Insurance Industry

Shojaei Seyed Amirhossein () and Almansour Bashar Yaser ()
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Shojaei Seyed Amirhossein: Faculty of Business and Management, 516898 Muscat University , Muscat, Oman
Almansour Bashar Yaser: Faculty of Business and Management, 516898 Muscat University , Muscat, Oman

Asia-Pacific Journal of Risk and Insurance, 2025, vol. 19, issue 1, 1-25

Abstract: This study explores how technological diversification affects financial performance in Iran’s insurance industry. Using semi-structured interviews with six experts, including CEOs and faculty members, key indicators of technological diversification were identified, such as new underwriting software and digital advertising platforms. A 33-item questionnaire was developed based on these insights and distributed to top managers of Iranian insurance companies, with secondary financial data sourced from the Central Insurance of Iran. The study employes regression analysis and Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the impact of technological diversification on financial performance, controlling for firm size, debt ratio, and company age. Findings indicate a significant negative relationship between technological diversification and both Return on Equity (ROE) and Return on Assets (ROA), suggesting that the costs of adopting new technologies may outweigh their short-term financial benefits. Additionally, high debt ratios were found to adversely affect ROA, highlighting the financial risks of excessive borrowing.

Keywords: technology; diversification; technological diversification; financial performance; insurance; Iran (search for similar items in EconPapers)
JEL-codes: D21 G22 H11 O33 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1515/apjri-2024-0011

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