Digital Disruption in Insurance Value Chain

Innovation is a significant force behind competitiveness, economic expansion, and wealth, particularly in technology. Modern technology advancements, particularly those related to information and communication, are steadily changing society and the economy by introducing new working practices and job categories. Insurance firms, which are cautious in adopting innovations, find these shifts a struggle. The adoption of InsurTech uses cutting-edge technological transformation of the insurance value chains. Although companies have become conscious of the value of InsurTech in gaining a competitive edge but market’s adoption of innovative technology has been comparatively slow for several reasons. Intending to achieve multiple benefits for the insurance and reinsurance companies, as well as for the policyholders and wider economy, digitization has the potential to alter this industry. The purpose of the article is to examine the significance of InsurTech as a challenge for established insurance firms. We will also study the change brought by technologies like big data, artificial intelligence, telematics, IoT, cloud computing, drones, and blockchain on insurance value chain activities. This article also highlights the negative effects of digitalization on conventional insurance organizations. The article concludes with possibilities for future study from an academic and professional perspective.