Determinants of Technology Adaption Within the Framework of TOE: An Insurance Sector Perspective

Abstract

Over the last four years, several interesting technology drivers have hit the market. Each of the technology has affected the insurance industry significantly. The cost of acquiring the customer through the digital medium is the least compared to the traditional methods. These changes in the industry could be analyzed based on the social, technological, economic, environmental, and political aspects. The social changes include non-interaction with customary channels including agents and using social media and online channels where they can make the decisions. Robo advisors, Internet of Things, digital platforms, telematics, telemetry, data analytics, and big data are the main disruptors in the insurance industry. Big data has enabled new pricing models with greater risk segmentation. Artificial Intelligence (AI) and Machine Learning (ML) algorithms are used for predicting customer churn in the insurance industry.