Marija Koprivica
Faculty of Economics, University of Belgrade, Kamenička 6, 11 000 Belgrade, Serbia
DOI: https://doi.org/10.31410/itema.2018.619

2nd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2018 – Graz, Austria, November 8, 2018, CONFERENCE PROCEEDINGS published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-13-4

Abstract
Technology-driven innovation in the financial sector, or fintech, is becoming more pronounced in the last few years, leading to more efficient and convenient financial services. In a digital environment, the insurance industry is also incessantly evolving in pace with changing needs of customers. Advances in technology shape policyholder’s expectations at the same time enable insurance companies to bring innovations to the market. Insurtech refers to the use of technology innovations in the insurance sector aimed to improve customer experience, simplify business processes, develop new products and increase competition. The bearers of this phenomenon are start-up companies that enter the insurance sector taking advances of new technologies and alter the whole insurance value chain. We will explore the potential impact of insurtech on the insurance sector, with a special emphasize on emerging market economies. Along with the rapid growth of venture capital investments they have attracted, insurtech companies have emerged across the geographical regions and lines of insurance business. The aim of the research is to identify challenges and opportunities that the entry of new, technology savvy players into the insurance sector imposes for established insurers. Insurtech companies are generally perceived as posing the risk of disruption in the insurance sector. Flexible business models allow insurtech companies to adapt to rapid technological change, while traditional insurance companies are often regarded as technology laggard. However, insurtech innovations could help insurers to reduce transaction costs, enter new markets and offer more client-tailored coverage. On the other hand, competitive advantages of incumbents are their expertise in risk assessment, customer base and compliance with regulation, all of which is a limiting factor for the expansion of insurtech business. Consequently, a combination of modern technology and experience through partnerships between insurtech companies and conventional insurers is the prerequisite for their mutual survival and development in favor of policyholders.
Key words
insurtech, insurance, start-ups, technology, innovations
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