Measuring the Financial Impact of Insurtech: A Cross-Country Analysis of OECD Insurance Markets

This study examines the relationship between insurtech ecosystem maturity and insurance industry performance across OECD countries through the development of a novel Insurtech Market Development Index (IMDI). Utilizing expert-weighted indicators from the Cambridge Fintech Ecosystem Atlas, the IMDI measures the scale and diversity of insurtech enterprises across countries. Cluster analysis is applied to explore how variations in ecosystem maturity correspond to differences in key performance outcomes, particularly profitability, loss ratios, and operational efficiency in the non-life insurance segment. The findings reveal differentiated performance patterns across ecosystem maturity levels: some countries with limited insurtech activity achieve moderate profitability, while several digitally advanced markets face higher costs and lower returns. These results indicate that insurtech ecosystem maturity alone does not guarantee improved performance; its benefits depend on effective integration within broader strategic, operational, and institutional contexts. This study contributes to the existing literature by introducing a comparative, data-driven approach to measuring insurtech ecosystem maturity and demonstrating its financial implications. It also offers practical insights for policymakers and insurers on fostering effective innovation ecosystems and prioritizing targeted investments.