Do InsurTech startups disrupt the insurance industry?

Vincent Y.L. Chang

Finance Research Letters, 2023, vol. 57, issue C

Abstract: Since 2010, InsurTech development has significantly impacted the insurance industry. This study employs an InsurTech-specific dataset, including the number of deals, dollar volume of funding, and human capital investment, to examine the extent of the disruption of InsurTech startups in the insurance industry. The findings reveal that InsurTech has had a substantial disruptive impact on the competitiveness of incumbents while exerting a weakly stimulating effect on premium growth. The evidence indicates that firm size is critical in determining the degree of stimulation. Specifically, smaller insurers with limited investments in InsurTech are more vulnerable to disruption.

Keywords: InsurTech development; InsurTech startups; Disruptive effect; Disruptive innovation; Stimulating effect (search for similar items in EconPapers)
JEL-codes: G22 L22 O31 O32 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005925

DOI: 10.1016/j.frl.2023.104220

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