The Insurance Market in the Era of Digital Transitions: Relationships Between Insurers, Big Tech, and Insurtechs

The digital revolution has profoundly transformed market dynamics, particularly within the insurance sector. This transformation encompasses the infrastructure and technologies that facilitate information exchange, the emergence of new business practices, a deluge of data, and the rise of innovative players capitalizing on these changes to deliver unique value propositions to customers. Traditional insurance companies face significant challenges and opportunities as they navigate competition from established Big Tech firms and agile insurtech startups. This study examines the disruptive nature of digital advancements, compelling historical players to confront the innovator's dilemma (Christensen, 1997): whether to adapt and develop established practices or invest in new strategies to leverage digital opportunities. In doing so, they also come up against smaller, more agile start-ups. We highlight the necessity for insurance actors to rethink their roles in light of new market entrants and the evolving landscape shaped by Big Tech's data monetization strategies. To analyze these dynamics, we propose an original framework in the form of a triangle of possibilities, which positions various market players and elucidates their strategic movements, innovations, and possible partnerships. This framework also aids in identifying competitive advantages and development trajectories, ultimately offering scenarios for the evolution of traditional insurance players in a digital and data-driven era.