THE IMPACT OF TECHNOLOGY ON THE INSURANCE INDUSTRY: A STUDY ON INSURTECH INNOVATIONS

Abstract

This study investigates the impact of Insurtech innovations on the Nigerian insurance industry, addressing the critical challenges
and opportunities presented by digital transformation. The research employs a qualitative, exploratory design, utilizing
thematic analysis of secondary data from industry reports, academic papers, and regulatory documents to examine the adoption
of Artificial Intelligence, blockchain, big data, and the Internet of Things. The findings reveal that while Insurtech adoption
is gaining momentum, it lags behind global averages due to significant barriers, including infrastructural gaps, regulatory
uncertainty, low consumer trust, and resistance from traditional insurers. The study identifies a critical knowledge gap
concerning the long-term financial sustainability of Insurtech and its impact on consumer trust in fully digital services. The
research concludes that for Nigeria to fully harness Insurtech's potential for enhancing financial inclusion and efficiency, a
collaborative effort is required. Key recommendations include establishing regulatory sandboxes for innovation, investing in
digital infrastructure, and fostering partnerships between traditional insurers and agile startups. This study contributes valuable
empirical evidence on Insurtech adoption in an emerging economy, offering actionable insights for regulators, industry
players, and future researchers.