ABSTRACT
Purpose: The goal of this study is to delve into the causes behind the Fintech sector's rise in various areas and its prospects. Fintech is rapidly expanding because of government legislation, multiple schemes, consumer expectations, a cashless economy, digitisation, globalisation, innovation, and other drivers. Need for the Study: Fintech firms are forming alliances with traditional financial organisations to stay afloat and compete. India is becoming a superpower regarding e-startups, especially unicorns. Many startups are undergoing initial public offerings (IPOs). Fintech is an emerging space in India, spreading its wings rapidly in every sector. Methodology: This work is based on a literature review. It utilises secondary data from numerous research publications, magazines, newspapers, published reports, relevant websites, Forbes magazine articles, stories from The Economic Times, the RBI Portal, and information from StartupIndia, Assocham, and Pwc, among others, to develop a conceptual framework showing the growth drivers of Fintech. Findings: The whole world has been affected severely due to COVID-19. Crisis always comes with some opportunity, and it is up to us how to turn the calamities into opportunities that further turn into innovation that has the power to lead the world. Fintech is that fruit that had been born normally but grew abnormally (tremendous growth) during the pandemic. Also, the roots are so deeper that they will flourish more and more. It has been found that the emergence of a cashless economy, ease of internet connectivity, etc., are the major factors that paved the way for growth for Fintech in India. Practical Implications: This study contains the conceptual framework which can guide the stakeholders, policymakers, management teams, field experts, etc., in knowing about their area expertise and looking for improvement, if any. Originality: There are many papers on the relationship between Fintech and financial inclusion, but this is the first study that builds the conceptual framework for the growth drivers of Fintech. © 2023 by Shreya Arora and Pankaj Madan.
ABSTRACT
As the global economy grapples with the advent of novel coronavirus and its variants, the aftermath has left all industries with ongoing uncertainties and incalculable loss of life and livelihood in most countries worldwide. In such unpredictable situations, the insurance industry and governments worldwide have become the prominent source of optimism to sail through the situation. This applies to the insurance industry globally, which is currently in the grip of fear due to the COVID-19 outbreak and anticipating significant economic slowdown and hardship because insurance rides on the back of other Industries. Therefore, to overcome a few of the tenacious roadblocks due to the COVID outbreak, Insurers will be forced to reassess all aspects of their business life cycle and take necessary steps to continue operations with minimum disruption. Precisely, the impact of COVID on General Insurers and Life and Health Insurers varied depending on the lines of business, product lines, and a bouquet of benefits offered by the insurers. The pandemic has taken a hit on new gross written premiums on specific lines of business, such as medical, travel, commercial, and business insurance. Few lines of business such as motor and home have remained muted during the COVID timeframe. However, the claims volumes for personal insurance (e.g., motor) have significantly decreased due to the lockdown and travel restriction;the industry has witnessed the highest claims volumes in life and health compared to the past several decades. They say, "As every dark cloud has a silver lining,” it has given an opportunity to many insurers to develop new products (e.g., Pay Mile Auto insurance) and push toward greater productivity, i.e., digital capability across product range which will result in an elevated position to understand and address to the customer and intermediary self-service (such as Portals) and implicit and explicit needs. Notably, the Insurance industry is likely to lean toward offering personalized yet custom-made products and services, which are sharply focused on preventative care and embracing digitalization across the value chain. Besides enabling scalability and connectivity, insurers are strategically focused on digitizing the core of the business and cloud implementation;automation across the insurance value chain is necessary to compete successfully with new innovative product development or inclusive business models. Around the globe, the insurance industry is continuously putting a deep focus on revitalizing the technology paradigm to grow and strive to achieve cost-effectiveness amid emerging markets, rapidly changing economic conditions and stiff competition from Insurtech. According to industry experts across geographies, growth may be a balanced blend of preventative and protective approaches, with a gamut of new and improved services and products, and insurers are deeply fostering redefining service-oriented strategies and innovative products. © 2023, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
ABSTRACT
The Covid-19 crisis has accelerated the need for a digital transformation of insurance companies, which has shifted from being a strategic option to a necessity. Dynamic changes are transforming the insurance sector. Insurance market leaders who look boldly into the future have not resorted to observation alone and they take actions that allow them to be more customer-oriented, improve their offers, and increase operational efficiency. The aim of this article is to present the digitization processes taking place in the insurance sector in the face of the crisis caused by the Covid-19 pandemic and an attempt to answer the following research question: has digitization in the insurance sector taken the right direction and is a response to the needs of the insurance market participants (insurers, insured persons, intermediaries, etc.) as a consequence of the actual epidemic risk (Covid-19) and its consequences. In order to verify the research question and achieve the set goal, a critical analysis of the source literature, the analysis of trends and digital solutions in the insurance sector and the analysis of secondary data were performed. The study was based on data available in national and international reports, including data published by the Polish Insurance Association, OECD or the Geneva Association. The presented results of the considerations indicate that the use of new technologies and ubiquitous digitization have a great impact on customer expectations, which was particularly noticeable in the aftermath of the epidemic risk come true (Covid-19). The article highlights the changes introduced in the organization's processes (the importance of decision support systems in insurance activities), as well as supporting consumer users (the universality of social media, and the availability of speech and image recognition technology).
ABSTRACT
The COVID-19 pandemic comes up with an opportunity for many industries to remake themselves strategically financially and operationally as per the changing needs of the markets. Application of various technologies is helping industries in moving forward and embrace the fifth Industrial Revolution. Technologies like big data analysis, artificial intelligence, fiber optics, image recognition, drones, are playing an important in the growth of industrial service sectors. Technology has transformed every industry of the countries and needless to say, the Insurance industry is no exception here. The term 'Insurtech' has been around since at least 2010, but its reach and influence have accelerated in the past few years and it will continue to with the advancement in big data, AI, IoT, wearable devices and nanotechnologies. In most basic term, Insurtech is applications of various technologies in the insurance industry. From both product and process perspectives, Insurtech is transforming the insurance industry. It is helping the Insurance Industry to become more customer-centric and create operational excellence. Now with Insurtech applications great results were seen in fraud detection rates, effective access to insurance services, low-cost to the customers and the company, increase in operational efficiencies and enhancement in customer experience. This paper discusses about digital growth and development in insurance sector and the ways the Insurtech is transforming the Insurance industry to a greater extent. Also focus of paper is on how insurtech is fostering the automation of insurance process using deep learning and other technologies. © 2022 IEEE.
ABSTRACT
The insurance industry is innovating. Business models, services and processes are rapidly evolving, largely backed by technological developments. The particular historical context of COVID-19 provides a suitable case to understand the relevance of exploiting technology to react quickly to traditional and emerging risks. Focusing on the initiatives put in place by the most influential insurance companies at the global level, we have framed the innovation mechanisms in the industry, highlighting four rationales underpinning these initiatives (Adaption, Expansion, Reaction and Aggression), which differ according to the relevance of the technology in use and innovation to the portfolio of risks covered. Overall, it emerges that insurance companies have the room and capability to innovate, in many cases using technological applications to cover new and existing risks. While the initiatives studied concern the entire value chain, basic primary activities, such as product development, sales and claims management, show that innovation based on new or existing technology determines the success and competitiveness of the business.