Insurance Technology Enhances the Management Efficiency of the Insurance Industry by Reducing Information Asymmetry

Ruoyang Wu, Haotong Yang () and Mohan Zhang
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Ruoyang Wu: Tianjin University of Finance and Economics, School of Finance
Haotong Yang: Adam Smith Business School, University of Glasgow
Mohan Zhang: Beijing No. 13 Middle School

A chapter in Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025), 2026, pp 770-778 from Springer

Abstract: Abstract The insurance industry has long faced efficiency issues caused by information asymmetry, including inaccurate risk assessment, difficulty in identifying fraud, and high operating costs, leading to widespread adverse selection and moral hazard. In recent years, insurance technology (InsurTech), represented by big data, artificial intelligence (AI), and blockchain, has provided new ways to improve information transparency and management efficiency. This paper aims to explore how InsurTech can mitigate information asymmetry to improve decision-making efficiency, operational efficiency, and customer response efficiency. Based on information asymmetry theory and data-driven decision-making models (DDDM), this paper constructs a causal analysis framework for the impact of technological interventions on management performance. In terms of research, three companies—Ping An Insurance (a representative of traditional insurance companies undergoing digital transformation), ZhongAn Insurance (a domestic internet insurance platform), and Lemonade (a global digital-native insurance company)—were selected for a comparative case study. The findings reveal that initiatives such as AI-assisted fraud detection, blockchain-enhanced data trustworthiness, and big data-supported personalized pricing have significantly optimized management efficiency in risk identification, process automation, and customer response for insurance companies. This paper not only provides a theoretical basis for understanding the efficiency improvement mechanisms driven by technology but also offers practical insights for insurance companies advancing their digital transformation.

Keywords: Insurance Technology; Information Asymmetry; Data-Driven Decision-Making; Management Efficiency; Case Study (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-2-38476-585-0_87

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