‘Working smart by being digital’ : an analysis of the effectiveness of InsurTech Use in the Maltese insurance sector

Abstract

Purpose: The scope of this research is to conduct a comparative study to seek any literature, that includes developments of InsurTech around the world, and examine the effectiveness of integrating Insurtech in the Maltese sector. In this regards, the aim of the author is to evaluate the effectiveness of using such measures. The author also aims to gather information from individuals to see their perception on adopting technological advances, taking into account different generations and other demographics. Methodology and Findings: In order to answer the research questions, the author employed a mixed approach of primary qualitative and quantitative research methods. Structured questionnaires and interviews were also conducted with a number of participants who have specific insurance knowledge and experience. These consisted of thirty-three statements, structured into different themes all emanating from the literature. For all the questions, apart from the demographics, participants were required to answer using a 5-point Likert-scale ranging from “Strongly Disagree” to “Strongly Agree”. However, during the interviews the author allowed participants to add any remarks to each statement and recorded these comments. The quantitative data was subjected to statistical analysis using Statistical package for Social Science whilst the results from the interviews were analysed using the Thematic analysis. Questionnaires indicate that the application of InsurTech for internal processes would be more appreciated by the older/ more experienced generation. Having said this, results from interviews indicate that InsurTech as a whole would be more applicable to millennials. Moreover, the aspect of GDPR needs to be taken into consideration, although it appears that policyholders would be willing to give the insurer access to their personal data if they are getting potential value such as reduction in premiums. Significance and Originality: The author chose to conduct the research on the effectiveness of InsurTech in the Maltese insurance sector, because as far as the author is aware no similar study has been carried out. More than ever, during these turbulent times as a result of the COVID-19 pandemic, it is important to research and exhibit awareness as to how effective the use of InsurTech can be. Furthermore, insurance companies must be able to adapt to the new technological environment they are operating in, which will prove to be essential for business continuity purposes. It is therefore one of the reasons for which the author shall be preparing a model to test the effectiveness of using InsurTech. Moreover, when a new technology is available on the market, the author will be able to check its effectiveness using the framework adopted in the following chapters. Therefore, the model developed will be able to help decision makers to choose the most effective technology.