Practitioners' View on InsurTech Adoption Challenges in Pakistan: A Qualitative Content Analysis
Maryam Saeed, Noman Arshed · IIUM Journal Of Economics and Management/International Journal of Economics, Management and Accounting · 2024
Pakistan is an agrarian economy with a booming Islamic financial system, but unlike other developing economies, it has a low share of insurance penetration. Literature has explored multiple dimensions of challenges along with their solutions within the insurance sector. This study proposes that it is the sluggish adoption of InsurTech that led to low insurance penetration. Hence this study is designed to identify different InsurTech adoption-related challenges in the Pakistan insurance industry. Past studies have explored the supply-side merits of InsurTech but overlooked the issues faced by the insurance industry in demanding and absorbing the available new technology. Many youth-led firms are offering the latest technologies for the industrial revolution in Pakistan. This links towards higher technology acceptability among the masses in the future and a possibility to transform the other lagging industries such as banking and insurance. Content analysis is applied to the previously recorded interviews of experts from the insurance industry to derive the themes validated using an independent rater using the interclass correlation coefficient. This study has identified the major InsurTech adoption issues faced by Pakistan's insurance sector practitioners. Academia and regulatory authorities can play a role in generating the industrial revolution output in this sector. The findings of the study are instrumental in developing a regulatory policy to foster InsurTech adoption and increase insurance penetration, which previous studies overlooked in the case of Pakistan.