Evaluating the New AI and Data Driven Insurance Business Models for Incumbents and Disruptors: Is there Convergence?

Zarifis A. & Cheng X. (2021) 'Evaluating the New AI and Data Driven Insurance Business Models for Incumbents and Disruptors: Is there Convergence?', 24th International Conference on Business Information Systems (BIS 2021), pp.199-208. Available from: https://doi.org/10.52825/bis.v1i.58.

10 Pages Posted: 8 Jul 2021

See all articles by Alex Zarifis

Alex Zarifis

University of Mannheim; Loughborough University - School of Business and Economics

Xusen Cheng

Renmin University of China

Date Written: July 2, 2021

Abstract

AI and data technologies are a catalyst for fundamental changes to insurance business models. The current upheaval is seeing some incumbent insurers trying to do the same more effectively, while others evolve to fully utilize the new capabilities and users these new technologies bring. At the same time, technologically advanced organizations from outside the sector are entering and disrupting it. Within this upheaval however, there are signs of a convergence towards an ideal and prevailing business model. This research identifies one exemplar incumbent and one disruptor and evaluates whether their models are converging and will become similar eventually. The findings support a high degree of convergence, but some differences are likely to remain even after this transitionary period. The differences identified are firstly in the evaluation of risk and secondly that traditional insurers prioritize revenue generation from what is their primary activity, while new entrants prioritize expanding their user base.

Keywords: Artificial Intelligence, Machine Learning, Business Model, Insurance

JEL Classification: M00, M1, M10, G22

Suggested Citation

Zarifis, Alex and Cheng, Xusen, Evaluating the New AI and Data Driven Insurance Business Models for Incumbents and Disruptors: Is there Convergence? (July 2, 2021). Zarifis A. & Cheng X. (2021) 'Evaluating the New AI and Data Driven Insurance Business Models for Incumbents and Disruptors: Is there Convergence?', 24th International Conference on Business Information Systems (BIS 2021), pp.199-208. Available from: https://doi.org/10.52825/bis.v1i.58., Available at SSRN: https://ssrn.com/abstract=3881777

Alex Zarifis (Contact Author)

University of Mannheim ( email )

Bismarckstrasse
L14
Mannheim, 68131
Germany

Loughborough University - School of Business and Economics ( email )

Epinal Way
Leics LE11 3TU
Leicestershire
United Kingdom

Xusen Cheng

Renmin University of China ( email )

59, Zhongguancun South Street
Haidian District
Beijing, Beijing 100872
China

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