Pros and Cons of Health Insurance Platforms
From Digital Culture & Society
Contents |
[edit] Datanalysing the uninsured: The coloniality of inclusive insurance platforms
Perticone, Y., Graz, J.-C., & Rahel, K. (2023). Datanalysing the uninsured: The coloniality of inclusive insurance platforms. Competition & Change, 27(3–4), 594–614. https://doi.org/10.1177/10245294221125849
DOI: 10.1177/10245294221125849
[edit] Context
The article discusses the rise of digital platforms to provide insurance coverage in developing countries by emphasising on the surge in platform-based technologies for inclusive insurance, and how they are particularly targeting excluded and low-income communities. The authors take insight from platform capitalism studies and post/decolonial scholarship in international political economy to conduct their research. The authors provide an in-depth look at the global expansion of platform capitalism and the racial/hierarchical systems behind them, especially in such areas, to shed light upon the exploitative nature of the inclusive insurance agenda as a result.
[edit] Overview
Before diving into the methodology of the research, the authors introduce the topic with the claim that the emergence of digital platforms in the insurance industry is lesser known in comparison to tech giants and MNCs like Amazon or Uber. The authors argue through the paper that the rise of inclusive insurance platforms in underprivileged or low-income regions is dependent on three dimensions of what they term as “datanylising”. The three dimensions include a). fostering a digital system that follows communication standards that are considered safe by global regulatory standards; b). collecting data in a fashion that reflects racial hierarchies and brings the prioritized or disadvantaged groups based on their race to light; and c). objectifying or commodifying individuals gathered in the dataset and seeing them as objects for profit to extract financial value from them. The authors claim that the number of projects on platform-based technologies for inclusive insurance products geared especially at the marginalised, economically disadvantaged populations of Asia, Latin America, and Africa increased from 55 in 2017 to 298 in 2019 which sparks the need for further research in the area. The study combines a case study and interview findings with an evaluation of institutional, technical, and historical factors that contribute to colonial patterns of dominance and data appropriation. The research technique used to investigate the case of inclusive motor insurance is as follows. Because inclusive insurance projects are still in their early stages, the researchers needed to first map and categorise the firms. They used CENFRI's Insurtech Tracker4 database to map the Insurtech landscape in developing and emerging nations for this purpose. Furthermore, they actively observed the 2019 and 2020 International Conference on Inclusive Insurance, as well as events rewarding projects such as the 2019 and 2020 Inclusive Fintech 50 hosted by Accion's Centre for Financial Inclusion. Insurance platforms shape the overall notions behind inclusion and exclusion in an economy such as that of the global south by using data collected from individuals which is further used to extract future revenues from financial product sales. As a result, these platforms promote accumulation processes predicated on the colonial and racial imperative of objectifying subjugated populations to exploit their lives as a resource for future income. They chose inclusive insurance platform firms for their research based on three criteria: (a) having a digital infrastructure that mediates an economic connection between an insurance company and a final client; (b) gathering conventional and alternative data on customers; (c) using predictive data analytics for risk assessment; and (d) aiming to achieve financial inclusion through insurance services. Thus, the inclusive insurance platforms investigated operate across Latin America, Africa, and South East Asia, with a particular emphasis on the Global South.
[edit] Strengths and Weaknesses
The research portrays its strengths by taking an interdisciplinary approach and combining insights from International Political Economy (IPE), platform capitalism, and post/decolonial studies. This approach enriches the analysis by considering economic, political, and socio-cultural dimensions. The study also focuses on inclusive insurance platforms in Latin America, Africa, and Southeast Asia, providing a global perspective on the topics addressed. This global perspective adds to a more thorough understanding of platform capitalism's influence on various locations. The application of a case study methodology allows for a thorough assessment of inclusive auto insurance in the context of platform capitalism. The research also uses a range of data sources, including in-depth interviews with officials, official papers and statistics, and industry reports. This enables for a more nuanced grasp of the difficulties and dynamics at hand and the multifaceted approach improves the findings' reliability and depth. Some of the weaknesses displayed by the research include it being limited to inclusive motor insurance, which makes the study limited in generalizability as the case study is and the conclusions may not be easily generalized to other products or areas of platform capitalism. The study might benefit by analyzing the applicability of its findings in diverse circumstances. The data is also subject to potential biases, the challenge of gaining access to certain information due to confidentiality issues and travel restrictions during the pandemic is acknowledged by the researchers. However, the research should provide a more detailed discussion of the potential bias introduced by these challenges and how it may impact the validity of the findings. Moreover, the interviews in the study were carried out between November 2019 and November 2020. Because technology and platform capitalism are continuously developing, the conclusions may be impacted by the current time frame and may not completely represent following advances. Lastly, the article mentions the impact of COVID-19 on social habits but does not extensively explore how the pandemic might affect the appropriation of real-time data, which could be a relevant consideration in the current context.
[edit] Assessment
In conclusion, the article successfully navigates the intersection of platform capitalism and the financial inclusion agenda. This study offers a dynamic investigation of digital platforms in the inclusive insurance market, shining light on the intricacies and constraints involved in their practices. The research succsefully builds upon their initial argument and the result clearly defines a). standardised devices for interoperable and secure economic transactions; b). appropriate tools for objectifying, classifying, and racially hierarchizing recipients; c). and calculable tools of knowledge production that transform individuals and populations into knowledge objects from which future financial value can be extracted. Despite its flaws, the article contributes significantly to our knowledge of how historical legacies impact the developing digital economy. The study answers its questions on how such institutions can turn towards exploiting underprivileged groups for profitability and financial gain. It encourages policymakers to address the structural implications of inclusive insurance platforms, advocating for a more nuanced approach to financial inclusion in the Global South. This research is aimed at benefiting academic researchers, policymakers and practitioners or professionals in the insurance industry. The study's research uncovers the paradoxes of the global inclusive insurance strategy and poses questions on its discriminatory and exploitative nature. The article illustrates its principles with the example of automobile insurance as a case study. It emphasizes the importance of historical and social factors in such research, highlighting the potentially exploitative character of corporations in the “so-called” quest for inclusive insurance. This research can majorly help policymakers who want to understand the ramifications of inclusive insurance systems by shedding light on the implications of exploitation, data privacy and other issues relating to the rise of digital platforms in the field. Future study might focus on specific policy proposals that solve the stated difficulties while also supporting ethical data practices.
[edit] Surrounded by middlemen - how multi-sided platforms change the insurance industry
Pousttchi, K., & Gleiss, A. (2019). Surrounded by middlemen - how multi-sided platforms change the insurance industry. Electronic Markets, 29(4), 609–629. https://doi.org/10.1007/s12525-019-00363-w
DOI: 10.1007/s12525-019-00363-w
[edit] Context
In this review, we look at Pousttchi and Gleiss's (2019) paper titled "Surrounded by middlemen - how multi-sided platforms change the insurance industry." The study looks at the revolutionary influence of Multi-Sided Platforms (MSPs) on the insurance industry, covering crucial problems including demographic shifts, low interest rates, and the continuous digital revolution. The report offers light on the issues encountered by traditional insurance firms and the growth of new competitors with MSP characteristics by concentrating on the shifting dynamics within the insurance market.
[edit] Overview
The authors claim that their work fills a research gap by presenting a systematic method to analysing the impact of MSP on the insurance business. Their research is then adapted to a value network reference model for the insurance business. They conduct their research by undertaking a case-study analysis to identify and analyse MSP-occupied or newly formed jobs. They began researching by screening existing MSP literature. This entailed doing a search in relevant scientific databases, with a concentration on high-quality publications and related research strands (for example, Information Systems, Business Informatics, Economics, Professional Services, and Insurance). During this time, only contributions having a clear connection to MSP in the insurance business were chosen. To align this study's topic with the broader picture, the authors expanded the literature evaluation with research on the insurance industry's digital transformation using a concept-oriented approach along the three dimensions of digital transformation. The study focuses on the emergence and spread of Multi Sided Platforms (MSPs) throughout the insurance industry and how they have affected insurance companies to adapt to newer business models. As traditional insurance companies struggle to keep up with gradually occurring issues in the evershifting digital world including demographic shifts and low interest rates, new players with innovative business models, such as small insurance startups and large tech companies like Amazon or Google, are rapidly leveraging digital technologies and data sources to meet the changing needs of digital customers. Many of these firms have multi-sided platform (MSP) features, operating as mediators between insurance providers and clients. The article fills a major research gap by analyzing how MSPs affect the statistics for a company such as profitability, value generation, value propositions, and consumer interactions across insurance markets as a whole. The major focus is on comprehending the responsibilities of MSP and their strategic implications for traditional insurance firms. The study emphasizes the insurance industry's existential issues, such as demographic shifts, persistently low interest rates, and the influence of digital transformation. The research then focuses on how digital transformation impacts insurance businesses' conventional structures and procedures, resulting in changes in client requirements and behaviors. The authors regard MSPs as significant stakeholders who function as intermediaries between insurance firms and clients, enabling transactions, eliminating information asymmetry, and showing multi-sided platform features. The study proposes a categorization structure that categorises MSPs based on their relationship to traditional insurance companies: competition, coordination, cooperation, and collaboration.
[edit] Strengths and Weaknesses
The study has some strong points. For starters, it claims to effectively fill a major research gap by focusing light on MSP's facilitate value creation and customer interaction in the open market. The employment of elements such as flow charts and using a design-science based methodology overall, improves the robustness of the study, allowing for a more methodical analysis which is simple to comprehend. The study's comprehensiveness, which takes into account changes in roles, value configurations, and the entry of new participants, also provides a more sophisticated view of industry dynamics. Furthermore, the study's practical applicability is clear, providing practitioners with actionable information to reassess their methods in response to MSP induced changes. The research investigates how MSPs seek customer ownership and the roles they play in marketing, sales, CRM, and other areas. Furthermore, the study highlights MSP that can either improve or decrease insurer profits, offering insight on the various interactions between MSP and traditional insurers. The study also identifies future research possibilities, particularly investigating alternative business models and the roles of big organizations such as Google, Apple, Facebook, and Amazon, provides a component for potential future research to the study. The research has some drawbacks, despite its virtues. For starters, there is a clear dependence on intellectual and theoretical analysis. A majority of the data has been collected on the basis of theoretical analysis and the incorporation of experimentation and observation through case studies seems less. More empirical data, such as case studies or industry surveys, might improve the study's rigor. Also, the use of sophisticated language may make the subject less accessible to readers who are unfamiliar with it, reducing jargon and incorporating better explanations of essential concepts can certainly help improve the study’s robustness. Furthermore, the study's exploration of potential scenarios for traditional insurers may be seen as subjective in nature, necessitating a more balanced assessment and indepth study around potential scenarios and changing customer behaviors. Furthermore, the study's assessment of other business models is fairly restricted, and a more extensive research in this area might enhance its findings.
[edit] Assessment
This paper's principal research contribution is to improve our understanding of how Multi-Sided Platforms (MSP) affect the process of value generation inside traditional service-oriented businesses. The research looks at how MSPs strategically place themselves inside the value network, impacting market value generation, value proposition, and customer interactions. This new perspective gives practitioners insights into various value network topologies, allowing them to analyse and change their methods accordingly. A useful path for future study might be to investigate the impact of MSP's expanding presence in the insurance industry on the creation of alternative business models. This investigation might extend to how MSP, such as peer-to-peer insurance models like Friendsurance, could possibly challenge traditional insurers or change from simply intermediates to primary providers. The authors instigate from their findings that MSP in the insurance value network may (a). increase competition among conventional insurers, (b). improve coordination among insurers, consumers, and other parties, (c). collaborate with insurers, or (d). improve collaboration between insurers and other enterprises. The report can be used to inform regulatory frameworks by policymakers interested in the insurance business and digital change. Understanding the possible effects of MSP on conventional insurers and market dynamics is critical for developing policies that promote innovation and competition. While the study recognizes its positives, such as filling a critical research gap and delivering practical insights, it might benefit from more empirical validation, facilitating more case studies, clearer exposition of important ideas, and a more balanced consideration of alternative situations. Future iterations of this research might provide even more relevant insights into the shifting dynamics of the insurance sector in the age of Multi-Sided Platforms by addressing these elements.
[edit] The Effects of Trust on Policyholders’ Purchase Intentions in an Online Insurance Platform
Luo, C., Chen, Q., Zhang, Y., & Xu, Y. (2021). The Effects of Trust on Policyholders’ Purchase Intentions in an Online Insurance Platform. Emerging Markets Finance & Trade, 57(15), 4167–4184. https://doi.org/10.1080/1540496X.2019.1695122
DOI: 10.1080/1540496X.2019.1695122
[edit] Context
This review looks at the study "The Effects of Trust on Policyholders' Purchase Intentions in an Online Insurance Platform" by Luo, Chen, Zhang, and Xu (2021). The study's goal is to investigate the complex interaction between policyholders' trust beliefs and purchase intentions within the setting of a third-party online insurance platform. It digs at the factors that influence trust in the specific field of internet insurance, giving significant insights for both academics and industry practitioners.
[edit] Overview
The application of the idea of trust in online insurance platforms is investigated in this study, with an emphasis on the possible considerable effect of three trust dimensions on policyholder purchase intentions. The study's backdrop goes into the potential antecedent variables leading to trust, focusing on a thorough literature review as well as insights obtained from an examination of the third-party online insurance platform "ZuiHuiBao". The expected elements impacting policyholders' trust assessments include the platform's reputation and system quality, cooperation with insurance providers, and privacy and economic risk concerns. The study collected 332 samples from Zuihuibao, an insurance platform, and the findings show that two aspects of trust belief, ie., ability and integrity, have a substantial influence on policyholders' inclinations to acquire insurance. Furthermore, the study investigates crucial antecedent aspects that impact policyholders' trust perceptions, such as reputation, system quality, collaboration, financial risk, and benefit. The theoretical foundation is based on trust theory, which recognizes trust as a multidimensional concept that includes ability, benevolence, and integrity. The study tries to apply this notion to the burgeoning industry of online insurance, where trust is considered as a critical component influencing individuals' behaviours and cognitions. Online insurance has acquired popularity in China's fast evolving internet finance sector, and the study examines the issues faced by third-party online insurance platforms in generating trust perceptions among policyholders. The study's theoretical contributions include verifying the validity of trust theory in the context of online insurance and finding major antecedent elements impacting trust views. Furthermore, the study intends to give practical implications for online insurance practitioners, advising them in the implementation of appropriate business strategies to generate trust beliefs and improve sales performance.
[edit] Strengths and Weaknesses
The study's fresh and original contribution to trust theory is a major strength. The research pioneers an investigation into the characteristics of trust that substantially impact policyholders' decisions in the arena of online insurance by expanding the application of trust theory beyond traditional contexts. The study is the first to apply trust theory to the setting of online insurance, especially building on Mayer, Davis, and Schoorman's (1995) model. This unique method broadens the theoretical foundation for comprehending customer behaviour in the context of digital insurance and opens the door to a more indepth study of the psychological variables at work in the online insurance market. Another impressive part of the study is the discovery of helpful variables for trust. Benefit and collaboration appear as critical components affecting policyholders' trust perceptions. The practical implications of these findings provide online insurance practitioners with concrete recommendations and ideas. The study's suggestions, which include improving cooperative connections and decreasing financial risks, present a useful road map for managers looking to improve trust on their platforms. The research also sheds light on the distinct effects of two categories of risks: privacy risk and financial risk. The significant and negative impact of financial risk on all aspects of trust, in contrast to the absence of influence of privacy risk, deepens knowledge behind risk perception in online insurance. Furthermore, the study distinguishes the influence of trust characteristics, indicating that ability, kindness, and integrity all have varied implications on policyholders' purchasing intentions. This detailed knowledge allows practitioners to adjust their approach to the precise elements of trust they wish to strengthen. The insights acquired into the diverse consequences of various categories of risk, particularly financial and privacy threats, help to a more thorough understanding of the trust dynamics in the online insurance arena. The study does have its weaknesses too as trust can be a subjective concept and not all recommendations apply to the generalized public. One significant issue is the possible lack of generalizability as a result of the dependence on data from a single third-party online insurance platform, Zuihuibao. While the findings may be applicable to comparable platforms, the extent to which they may be extended to different platforms is unknown, raising concerns about the study's broader application. Furthermore, the study focuses solely on third-party platforms, leaving out insights regarding trust dynamics on insurance company websites. Recognizing this limitation, the paper advocates for more research to investigate trust determinants in various online insurance circumstances, emphasizing the need for a more thorough understanding. One notable flaw is the contradictory conclusion about benevolence. According to the study, benevolence has no substantial influence, which contradicts past studies in the electronic commerce arena. This disparity raises concerns regarding the generalizability of trust characteristics across different online environments, indicating the need for more research. Also, The study's emphasis on third-party platforms may restrict insights into how trust works directly on insurance company websites. To provide a more full picture, future study might compare and contrast trust dynamics across third-party platforms and official insurance company websites. Furthermore, questions are raised by the study's limited analysis of privacy risk, specifically its claim that privacy risk had no influence on trust perceptions. While the explanation links this to the macroenvironment of online transactions in mainland China, a more nuanced examination of privacy issues might give a more complete picture.
[edit] Assessment
Finally, this study makes significant progress in revealing information on trust dynamics in third-party online insurance platforms. The research digs into the antecedent determinants of trust within the context of the study. The findings indicate that five of the six identified antecedent elements have substantial effects on either all or particular dimensions of trust, confirming the key function of trust in digital insurance platforms Its unique contribution to trust theory, discovery of supporting variables, and sophisticated analysis of trust dimensions and risk kinds are its strengths. However, its shortcomings, such as the possible lack of generalizability due to the research of a single online platform popular in China, control of insurance company websites, and the extent of antecedent factors, highlight the need for more study. Despite these flaws, the study offers useful insights for practitioners and scholars alike, opening the way for a more thorough understanding of trust in the expanding world of online insurance platforms.
On20lu 00:58, 9 December 2023 (UTC)
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