Insurance Digital Disruption and Impact of Insurtechs in the Insurance Economy

The revolution in consumer behavior transformed industries through the adoption of new technologies, forced incumbents to adapt their organization and opened doors to a tech-savvy generation of new entrants. The digital dynamic facilitated the deployment of innovative solutions and empowered start-ups to become genuine competitors to the existing incumbents, challenge the position of the leaders and disrupt traditional industries. The emergence of innovative entrepreneurs is also real in the insurance industry.
For the past ten years, insurtechs have been a powerful driver for change, pressing incumbents to modernize their business models by responding faster and more efficiently to consumer demand.
The industry witnesses the emergence of start-ups that ambition to disrupt the insurance business model yet these insurtechs have difficulties appealing to consumers and differentiate themselves against traditional yet powerful incumbents.
​Historical leaders (e.g., Allianz, AXA, Generali, Prudential) remain ahead on all indicators such as revenue, presence, market share, and reliability. The paper evaluates some assumptions on why Insurtechs are unable to scale and sustain. It is a preliminary paper prior to a dissertation on insuretchs in-depth assesment.

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