The factors influencing the uptake of InsurTech

Abstract

In today’s dynamic world, technology is on the increase and improving constantly. The rise of FinTech and InsurTech has reflected the intention to combine financial services within the banking and insurance sectors respectively, to technological devices. The combination of the two sought to increase efficiency and effectiveness. This form of innovation has affected the modern world drastically and has brought with it a number of positive and negative impacts.

This dissertation will analyse and understand the factors that influence the uptake of InsurTech from the point of view of insurance customers. In addition, this dissertation will analyse how the elements of intrusion, moral hazard and adverse selection in particular affect the uptake of InsurTech, from the point of view of insurance companies. To achieve this aim, two empirical strategies will be combined in order to derive more robust results. The first strategy involves a quantitative survey administered among the general public and insurance customers. The second approach will involve in-depth interviews with key players within the insurance industry, including those companies who already offer InsurTech products on the Maltese market. Thus, in conclusion, this would provide essential information to insurance companies with regards the positive and negative factors which tend to affect its’ customers allowing them to increase their efficiency towards their customers. The effects of the particular elements, intrusion, moral hazard and adverse selection, and the specific influence of InsurTech, will also be analysed, allowing insurance companies to understand further how these particular factors impact the insurance industry, both in the present as well as in the coming years.