Innovation and digital transformation of insurance industry: new perspectives and business implications

This paper is concerned with the impact that digital technologies have on insurance, and reflects on the contribution that insurance makes to the development of a digitalized economy. New technology start-up firms – or InsurTechs – are entering the industry to deliver some of the services typically provided by incumbent insurers and intermediaries. Industrial companies as well as established technology firms are eyeing opportunities in insurance. The new entrants present opportunities for mutually beneficial partnerships with insurers but they could also become direct competitors, putting pressure on profit margins and challenging the insurers, especially at their interface with customers. For regulators the dual implications of innovation make it a critically important but also challenging topic to address and innovation hubs and sandboxes seem to be the new proposals.