InsurTech—Promise, threat or hype? Insights from stock market reaction to InsurTech innovation

Yu Luen Ma and Yayuan Ren

Pacific-Basin Finance Journal, 2023, vol. 80, issue C

Abstract: This study assesses the impact of InsurTech innovations on incumbent insurers, their competitors and the insurance industry as a whole using a unique dataset of global InsurTech start-up companies funding events from 2017 to 2019. We conduct an event study on insurers' stock returns and find mixed results on investors' reaction to insurers' investment in InsurTech innovations. Our results show that the stock market reacts positively to blockchain, peer-to-peer and on-demand digital insurance but negatively to digital analytics, digital distribution, cross-selling and cyber security innovations. We also find that the insurance industry is adversely affected by disruptive innovations brought in by competitors outside of the industry while disruptive innovations from incumbents do not have such a negative impact. These results are discussed and interpreted.

Keywords: InsurTech; Disruptive innovation; Event study (search for similar items in EconPapers)
JEL-codes: G14 G22 O39 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X23001257
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:80:y:2023:i:c:s0927538x23001257

DOI: 10.1016/j.pacfin.2023.102059

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().