Explaining the Delay in Digital Disruption of the Insurance Through a Complex Industry Paradigm

Multiple industries are disrupted by tech-savvy new entrants that modernize the way consumers and suppliers interact. The insurance industry resists to such transformation despite the aggressive emergence of digital start-ups that attempt to change the traditional operating model. Insurance players deals with a complex industry that requires insurance expertise and experience beyond digital know-how. Barriers to entry such as regulation or capital requirement, passive demand and conservative customer journey and the technicality of the industry favor the position of incumbents and challenge the scalability and economic sustainability of insurtechs. The paper discusses these specific aspects and explains how such paradigm not only slows-down the digital transformation of the industry but also delays its potential disruption.

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