Research on InsurTech and the Technology Innovation Level of Insurance Enterprises

Abstract

New technologies are integrating and deeply influencing people’s work and life, and have become a key factor leading the continuous innovation of the insurance industry. The application of InsurTech has attracted widespread attention in the industry, and it is necessary to conduct in-depth deconstruction and analysis of its impact on insurance enterprise innovation to ensure the sustainability of technological innovation in insurance enterprises. Based on the panel data of Chinese insurance enterprises from 2011 to 2020, this paper empirically examines the relationship between InsurTech and enterprise technological innovation level and the mechanism of action by using the fixed effect model and the intermediary effect model. The empirical research results are as follows: (1) The development of InsurTech has significantly improved the technological innovation of insurance companies. (2) From the perspective of mechanism, InsurTech mainly improves the technological innovation level of insurance companies by alleviating financing constraints. (3) Furthermore, we also found significant differences in the promotional effect of InsurTech’s development on enterprises of different sizes and properties. At the same level of development, InsurTech has a greater and more significant “incentive effect” on the technological innovation level of non-state-owned enterprises and small and micro insurance enterprises. The research conclusion of this article not only enriches the literature on InsurTech and the technological innovation level of insurance companies, but also has significance for China’s insurance companies to help them formulate digital transformation policies and promote the “sustainable development” of technology empowerment insurance strategies.

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“…Because inflation refers to an increase in prices, for insurance companies, the rate of inflation can directly affect costs. Insurance policies often include long-term agreements (Liu et al 2023). Therefore, these long-term costs must be considered to develop an effective insurtech system (Basse et al 2022).…”