Research On The Impact Of Insurtech Development On The Operational Efficiency Of Insurance Companies In China

The development of information technology has led to a wave of financial technology sweeping across the world.Insurance technology,as a derivative of financial technology,has gradually developed into an important force in the insurance industry in recent years.With the development of big data,artificial intelligence,Internet of Things,biometrics,5G and other information technologies,insurance companies have increased their investment in insurance technology and reshaped their business processes with it,involving the marketing,underwriting,claims,risk control and operation management sides of insurance companies.Insurance technology has reshaped and deeply empowered the business processes of insurance companies.However,the impact of insurance technology on the efficiency of insurance enterprises is still unclear at this stage,and there are significant differences between different types and ownership of insurance enterprises in China in terms of operation and other aspects.Therefore,it is more important to study the impact,heterogeneity and transmission channels of insurance technology on insurance enterprises’ operation efficiency for the transformation and development of the insurance industry.Theoretically,based on the principles of insurance finance and,the theoretical basis of technological innovation theory and efficiency measurement,this paper firstly dissects the promotion effect of insurance technology on the operation of insurance enterprises,then,in order to study the transmission mechanism of the role of insurance technology,this paper starts from the business process level of insurance enterprises,taking the sales side,underwriting side,claims side,risk control side and operation management side as the perspective,and with specific case study objects.The paper explores the impact of the introduction of insurance technology on the business processes of insurance enterprises,and then proposes the research hypothesis of this paper.Based on the theoretical research,the paper selects the operation data of 80 insurance enterprises from2011 to 2020 and adopts the DEA-Malmquist index model to verify the hypotheses of the paper.The results show that: insurance technology significantly promotes the improvement of insurance enterprises’ operation efficiency;insurance technology promotes the efficiency of life insurance enterprises more than property insurance enterprises;insurance technology promotes the efficiency of Chinese insurance enterprises more than foreign insurance enterprises.The results show that insurance technology significantly contributes to the improvement of insurance enterprises’ operational efficiency.In addition,the mediating effect test reveals that insurance technology can influence the operational efficiency of insurance companies through the insurance business income transmission channel.From the results,this paper puts forward two policy recommendations,on the one hand,to improve the regulatory system of insurance technology to avoid the potential risks brought by the lag of insurance technology regulation in the development of insurance technology.On the other hand,insurance industry enterprises should strengthen their own technology investment and accelerate the pace of digital transformation.Finally,this paper foresees the future research trends of insurtech.