Technology improves performances of industries generally. While some applications impact insurance industry profoundly, however, some of the improvement is more of office automation and is better not classified as InsurTech. The article is to provide a practical perspective of InsurTech from the review of definitions and purposes of insurance, and the induction of risk information and risk financing, to silhouette insurance ecosystem and framework of InsurTech. Under risk information, the information layering is explored and the basic three elements of risk, contract and portfolio are identified in insurance ecosystem; under risk financing, transaction costs of insurance and law of large numbers are applied. Then, we propose a framework based on the three elements for InsurTech in regard of availability, affordability and assurability. Two approaches are also proposed for InsurTech development - evolutionary way to revise specific areas of the current insurance models and revolutionary way to revamp the insurance models as to redesign the arrangement of risk protection.
Yu, Julian and Yen, Benjamin, "Re-Think Insurance: A New Perspective of InsurTech" (2020). ICEB 2020 Proceedings (Hong Kong, SAR China). 15.