Determining the transition Path to Emerging Insurance Technologies in Iran

The insurance industry is one of the indicators of development in the country. Insurance in Iran is facing the challenge of low penetration rate among the people. Thus, it needs to change the way of providing services and increase the attractiveness of the services in order to be welcomed by the people. Insurtechs are fintech companies that provide insurance services based on technological innovation. They play an important role in improving the insurance ecosystem and help to improve the efficiency of traditional insurance. Insurtechs have an effective role in increasing insurance penetration by providing customized and cost-effective services. Despite the understanding of this important issue by decision makers in the field, the services of insurtechs in Iran are limited to the sale of insurance products and could not fully cover the insurance value chain. Therefore, this study aims to investigate and analyze the socio-technical transition to insurtech in Iran.

This study using a systematic review, aims to explain the transition process and identify the transition path to insurtechs. The research paradigm is interpretive and uses the analytical framework of the Technological Innovation System and the Multi-Level Perspective. Since the research on complex phenomena such as transition cannot be reduced to models with precise methodological methods and requires the creative interpretation of the researcher, therefore, the qualitative research method of narrative-research has been used. Data were collected through the study of central insurance and regulation documents and reports and interviews published in fintech media from 2014 to 2021. A total of 107 reports were reviewed, of which 52 were related to the discussion and contained the opinions of 50 experts in various fields of the country's insurance, which were reviewed and coded.

In this study, in the first step, the functions of technological innovation system in insurance were identified, which include: providing technological infrastructure, formation of communications, knowledge exchange, policymaking and legislation, informing citizens, financing, human resource development, research and providing innovative insurance services. In the second step of the research, the actors who perform these functions were identified and the behavior of the actors of the regime against the innovative services of startups was investigated. Then, according to whether the actors of the regime perceive technological developments and institutional changes as symbiotic or competitive, the transition path of Insurtech was identified.

Following the developments resulting from the introduction of technology into insurance at the international level, the incumbent actors have begun a slight shift and gradual institutional changes. The incumbents of the insurance industry are aware of the importance and necessity of innovation in insurance and have accepted the services of startups. The relations between insurtechs and the incumbent actors in the regime have been symbiotic, which improves the performance of the insurance industry. However, due to the fact that the conditions for startups to provide various services and products and cover various stages of the insurance chain such as damage assessment and risk assessment are not provided, therefore, innovative companies have a low level of development; Therefore, the path of transition to insurtech has been a path of transformation.