On the (Future) Role of On-Demand Insurance: Market Landscape, Business Model and Customer Perception

Details

Serval ID
serval:BIB_9CB2928B8183
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
On the (Future) Role of On-Demand Insurance: Market Landscape, Business Model and Customer Perception
Journal
Geneva Papers on Risk and Insurance - Issues and Practice
Author(s)
Erny M., Wagner J., Zeier Röschmann A.
ISSN
1018-5895 (print)
1468-0440 (electronic)
Publication state
Published
Issued date
2022
Peer-reviewed
Oui
Language
english
Abstract
Over the last decade, digitization and individualization have fostered the development of on-demand services in many industries. In the insurance sector, technological progress brings new possibilities on how risks can be insured. This paper studies on-demand insurance and thereby takes three perspectives. First, we define on-demand insurance and study the current market landscape of offerings leading to a characterization of the phenomenon. Second, we analyze the on-demand insurance business model, discuss how value is created, and develop a taxonomy of the dimensions among business model components. Third, we describe the awareness and interest of potential customers in Switzerland using novel data recorded from a recent consumer survey. Using the results from the market study, business model analysis, and customer survey, we discuss the (future) role of on-demand insurance shedding light on the ongoing business model transformation in the insurance industry. We conclude that insurtech companies address the emerging customer needs and that traditional incumbent insurers must innovate to keep their prominent role at the customer interface. While novelty and complementarity of on-demand insurance solutions bring value today, we expect that efficiency and customer retention add more value in the future, especially once technology has matured and business model components are well-aligned.
Keywords
on-demand insurance, market landscape, business model, survey study, technology innovation, insurance economics
Open Access
Yes
Create date
17/01/2022 17:24
Last modification date
09/02/2022 7:32
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