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Understanding the InsurTech dynamics in the transformation of the insurance sector

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  • Iván Sosa
  • Óscar Montes

Abstract

InsurTechs have transformed the insurance sector by becoming a fundamental role in leveraging technology to respond to business and costumers needs, driving solutions based on the availability of new data sources, the interconnectivity among actors, or even access to new possibilities in terms of risk hedging. InsurTechs can be seen as innovations occurring simultaneously that have disrupted, accelerated, and enhanced the transformation of the insurance sector. However, to date, there is a significant research gap to understand how InsurTechs have been responsible for this transformation. For this purpose, qualitative research has been carried out, through the analysis of 150 InsurTechs, based on grounded theory methodology. This study has a threefold objective. First, to identify what has driven InsurTechs; second, to discover what types of innovations have emerged, and third, to understand the dynamics of InsurTech. Findings have identified five InsurTech driving capabilities that have been instrumental in boosting innovations in the insurance sector. These five capabilities suggest 15 types of innovations that have transformed the insurance sector. Finally, these 15 innovations suggest three waves that provide insights for understanding how InsurTech Dynamics has transformed the traditional structure of the insurance sector leading to a dynamic user‐centric ecosystem.

Suggested Citation

  • Iván Sosa & Óscar Montes, 2022. "Understanding the InsurTech dynamics in the transformation of the insurance sector," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(1), pages 35-68, April.
    • Handle: RePEc:bla:rmgtin:v:25:y:2022:i:1:p:35-68
    DOI: 10.1111/rmir.12203
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    References listed on IDEAS

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    Cited by:

    1. Iván Sosa Gómez & Óscar Montes Pineda, 2023. "What is an InsurTech? A scientific approach for defining the term," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 26(2), pages 125-173, July.
    2. Feiyan Yang & Jiahui Ren & Changyuan Xia, 2025. "Digitalisation and cream skimming adverse selection in the property-casualty insurance industry: evidence from China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 50(2), pages 302-334, April.
    3. Torsten Oletzky, 2023. "InsurTech in the United States and Germany—What are the drivers behind the different business models?," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 26(4), pages 485-511, December.
    4. Jie Liu & Shujun Ye & Yujin Zhang & Lulu Zhang, 2023. "Research on InsurTech and the Technology Innovation Level of Insurance Enterprises," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    5. Porris, María Susana & Pesce, Gabriela & Zanfrillo, Alicia Inés, 2025. "Innovación digital en el sector asegurador de Argentina," Nülan. Deposited Documents 4404, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    6. Christopher P. Holland & Anil S. Kavuri, 2025. "Insurtech strategies: a comparison of incumbent insurance firms with new entrants," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 50(1), pages 78-105, January.
    7. Chang, Vincent Y.L., 2023. "Do InsurTech startups disrupt the insurance industry?," Finance Research Letters, Elsevier, vol. 57(C).
    8. Cosma, Simona & Rimo, Giuseppe, 2024. "Redefining insurance through technology: Achievements and perspectives in Insurtech," Research in International Business and Finance, Elsevier, vol. 70(PA).

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