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Do InsurTech startups disrupt the insurance industry?

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  • Chang, Vincent Y.L.

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.

Suggested Citation

  • Chang, Vincent Y.L., 2023. "Do InsurTech startups disrupt the insurance industry?," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005925
    DOI: 10.1016/j.frl.2023.104220
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    References listed on IDEAS

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    More about this item

    Keywords

    InsurTech development; InsurTech startups; Disruptive effect; Disruptive innovation; Stimulating effect;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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