Author(s)

YunXiao Ma

Affiliation(s)

International Business Strategy Institute, University of International Business and Economics, Beijing 100105, China.

Corresponding Author

YunXiao Ma

ABSTRACT

In the realm of risk management, InsurTech is not only pivotal for insurance companies to maintain their financial stability, but also serves as a significant gauge of a healthy insurance market. Drawing upon data from the insurance industry at the provincial level in China from 2010 to 2021, this paper investigates the impact of InsurTech on risk-taking capacity in the context of the COVID-19 pandemic shock. Using the shock of the pandemic as a natural experiment, this study successfully identifies a causal relationship between InsurTech and risk-taking in the insurance industry, unveiling a mechanism of influence spanning from InsurTech to risk identification and management efficiency, and subsequently to risk-taking capacity. Our findings suggest that, under the pandemic shock, InsurTech considerably augments risk-taking behavior in the insurance industry. The insights derived from this study bear significant practical implications for managing risk-taking at the provincial level in the insurance industry, particularly in the context of emerging technology adoption and pandemic shocks, thereby fostering stability and healthy development in the insurance sector.

KEYWORDS

InsurTech; Risk-taking; COVID-19; Difference in difference

CITE THIS PAPER

YunXiao Ma. The impact of InsurTech on risk-taking behavior in insurance companies: evidence from China. Journal of Trends in Financial and Economics. 2024, 1(2): 12-17. DOI: https://doi.org/10.61784/jtfe3015.

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