The Impact Of InsurTech On The Profitability Of Insurance Companies

Insur Tech evolved from Fin Tech to power the digital transformation of the insurance industry.Looking at the development of Insur Tech,more than ten years ago,Internet insurance,as an early form of Insur Tech,began to inject new vitality into the insurance industry.Nowadays,the vigorous development of major emerging technologies enables Insur Tech to be applied in all aspects of the insurance business,which not only breaks the business model and business philosophy of traditional insurance companies,but also brings brand-new solutions to the pain points of the industry.Although technological innovation can empower the insurance business value chain and solve the pain points of traditional business,but the degree of application,whether it can substantially help the operating conditions of various insurance companies,and effectively improve the profitability of various insurance companies are further issues that need to be paid attention to.In this context,this paper takes the influence of Insur Tech on the profitability of insurance companies as a starting point,and discusses the important role of Insur Tech in promoting the rapid development of the insurance industry,which has important research significance and research value.In the theoretical analysis part,this paper summarizes the concept,development status and application of Insur Tech through literature research.Then,based on the theories of innovation economics and information asymmetry,the impact of Insur Tech on the profitability of insurance companies is analyzed from the theoretical level.Further from the perspectives of income and cost,from the business income channel,the investment income channel,the insurance compensation Channel and the expense management channel,put forward the transmission mechanism of insurance technology affecting the profitability of insurance companiesOn the basis of theoretical research,this paper selects the insurance business sub-index under the China Digital Financial Inclusion Index compiled by Peking University to measure the development level of Insur Tech.In addition,the text mining method was used to construct the Insur Tech social attention index to measure the development level of Insurtech from another perspective.The relevant data of 127 insurance companies in the country from 2011 to 2019 were selected for empirical analysis to verify the research hypothesis proposed in this paper.The results show that:(1)The impact of Insur Tech on the profitability of insurance companies presents a "U-shaped" relationship that first inhibits and then promotes.(2)Insur Tech has a greater impact on the profitability of property and casualty insurance companies than life insurance companies.(3)Insur Tech has a greater impact on the profitability of Chinese insurance companies than foreign insurance companies.(4)Insur Tech has a "U-shaped" relationship with premium income,investment income,and claims expenses,and Insurtech has an "inverted U-shaped" relationship with expense costs,which verifies the transmission mechanism of Insur Tech affecting the profitability of insurance companies.It means Insur Tech further affects the profitability of insurance companies by having an impact on insurance premium income,investment income,claims expenses and expense costs.Finally,based on the above research conclusions,it is proposed from the company level to attach importance to scientific and technological construction,seek multi-party cooperation,optimize business structure,and deeply integrate technology.mechanism and other policy recommendations.