Usage-Based Insurance—Impact on Insurers and Potential Implications for InsurTech

Che, Xin; Liebenberg, André P.; Xu, Jianren

doi:10.1080/10920277.2021.1953536

Cited by 24 publications

(10 citation statements)

References 70 publications

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“…Using such technologies would help insurance companies to provide faster, cheaper, and more customer-oriented services. Thus, insurtech offers the opportunity to digitize and restructure the insurance industry (Che et al 2022). This contributes significantly to the development of the sector.…”

Section: Introductionmentioning

confidence: 99%

Insurtech in Europe: identifying the top investment priorities for driving innovation

Eti,

Dinçer,

Meral

et al. 2024

Financ Innov

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The purpose of this study is to determine the essential indicators to improve insurtech systems and select the most critical alternative to increase insurtech-based investments in European countries. A novel fuzzy decision-making model is generated by integrating entropy and additive ratio assessment (ARAS) techniques with spherical fuzzy sets. First, the indicators are weighted using spherical fuzzy entropy. Then, the alternatives are ranked using spherical fuzzy ARAS. The alternatives are also ranked with the spherical fuzzy technique for order of preference by similarity to the ideal solution methodology. The main contribution of this study is that it would help investors to take the right actions to increase the performance of insurtech investments without incurring high costs. Another important novelty is that a new fuzzy decision-making model is proposed to solve this problem. The results of the two models are quite similar, proving the validity and coherency of the findings. It is found that pricing is the most critical factor that affects the performance of insurtech investments. Insurtech companies are required to make accurate pricing by conducting risk analyses to increase their profits and minimize their risks. Additionally, according to the ranking results, big data are the most appropriate way to improve the performance of insurtech investments in Europe. Big data analytics helps companies learn more about the behavior of their customers. By analyzing data about their customers’ past transactions, companies can provide more convenient services to them. This would increase customer satisfaction and enable companies to achieve long-term customer loyalty.

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Section: Introductionmentioning

confidence: 99%

Insurtech in Europe: identifying the top investment priorities for driving innovation

Eti,

Dinçer,

Meral

et al. 2024

Financ Innov

View full text Add to dashboard Cite

show abstract

“…While there is some literature on specific business models such as on-demand insurance (Braun et al, 2023;Zeier-Röschmann et al, 2022), usage-based insurance (Che et al, 2022;Holzapfel et al, 2023) or the impact of artificial intelligence on business model transformation…”

Section: Introductionmentioning

confidence: 99%

“…While there is some literature on specific business models such as on‐demand insurance (Braun et al, 2023; Zeier‐Röschmann et al, 2022), usage‐based insurance (Che et al, 2022; Holzapfel et al, 2023) or the impact of artificial intelligence on business model transformation in the InsurTech scene (Berman et al, 2021), there has been relatively little focus on the general types of business models and legal structures of InsurTechs as well as on regional differences in their distribution. The impact of the most recent developments in the financial markets on the ability of InsurTechs and their founders to finance their business models has also not been analyzed in much detail yet.…”

Section: Introductionmentioning

confidence: 99%

InsurTech in the United States and Germany—What are the drivers behind the different business models?

Oletzky

2023

Risk Manage Insurance Review

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Comparing the InsurTech ecosystems of the United States and Germany (Europe), there are significant regional differences in the choice of business models. While many InsurTechs in the United States have opted for the business model of a fully licensed insurer, this business model is much less common in Europe. In Europe, many InsurTechs seem to shy away from applying for a license as an insurer and limit themselves to the business model of a broker or a managing general agent. This paper analyzes the factors that influence an InsurTech's choice of business model when deciding whether or not to apply for an insurance license. It examines the impact of different local market environments on these decisions, as well as the role that access to venture capital plays in business model decisions and how regulators and their actions influence the decision‐making process.

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“…Vehicles with different driving risks may need almost the same amount of insurance. To solve this problem, the internet of vehicles (IoV) technology makes it possible to evaluate vehicle driving behavior effectively and realize intelligent usage‐based insurance (UBI) systems 1 . The intelligent UBI system could customize vehicle insurance by evaluating the usage of vehicles and driving behavior.…”

Section: Introductionmentioning

confidence: 99%

“…To solve this problem, the internet of vehicles (IoV) technology makes it possible to evaluate vehicle driving behavior effectively and realize intelligent usage-based insurance (UBI) systems. 1 The intelligent UBI system could customize vehicle insurance by evaluating the usage of vehicles and driving behavior. Hence, the vehicle owner can get more accurate insurance premiums and real-time risk-driving behavior warning services.…”

Section: Introductionmentioning

confidence: 99%

CCUBI: A cross‐chain based premium competition scheme with privacy preservation for usage‐based insurance

Sun

Wang

et al. 2022

Int J of Intelligent Sys

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Usage‐based insurance (UBI) provides reasonable vehicle insurance premiums based on vehicle usage and driving behavior. In general, there are three major issues in realizing intelligent UBI systems. First, UBI evaluation mechanisms are not auditable to drivers. Insurers may thus deliberately adjust the UBI premiums. Second, the process of collecting driving data by insurers may lead to serious privacy breaches. Third, forging safer driving data for reducing insurance premiums may cause economic losses for insurers. To address these challenges, in this study, we propose CCUBI, a cross‐chain‐based premium competition scheme with privacy preservation for intelligent UBI systems. We introduce tamper‐resistant blockchain and smart contracts to construct credible insurance mechanisms. The cross‐chain technology connects these blockchains in the entire network to form an open premium competition scheme. Vehicle owners can assess designated insurers by sharing historical data with them to get a suitable CCUBI plan. In addition, we propose a data aggregation method used for CCUBI analysis with privacy preservation. Vehicle owners only publish proofs of the driving data. Proofs can still maintain privacy and computability in cross‐chain flows. Finally, we adopt roadside units to detect forged driving data. We conduct a detailed security analysis. Experimental results also demonstrate the efficiency of CCUBI.

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Usage-Based Insurance—Impact on Insurers and Potential Implications for InsurTech

Cited by 24 publications

References 70 publications

Insurtech in Europe: identifying the top investment priorities for driving innovation

Insurtech in Europe: identifying the top investment priorities for driving innovation

InsurTech in the United States and Germany—What are the drivers behind the different business models?

CCUBI: A cross‐chain based premium competition scheme with privacy preservation for usage‐based insurance

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