Journal article in Insurance Review
We are pleased to present an insightful article, “On-Demand Insurance: Idea, Development, Impact on Market Equilibrium,” authored by Łukasz Kuryłowicz and Jakša Krišto. This comprehensive analysis delves into the rapidly evolving world of on-demand insurance, a business model that caters to the modern consumer’s need for flexibility and customization.
The article examines the growth and transformation of the on-demand insurance sector, driven by technological advancements and shifting customer expectations. It provides an overview of how this model works, highlighting its potential to enhance consumer welfare by offering coverage precisely when and where it’s needed.
Key takeaways from the article include:
- The innovative nature of on-demand insurance, designed to activate coverage only when required, providing cost-efficiency and flexibility for consumers.
- An exploration of the economic implications, showing how this model could improve market efficiency by addressing specific risk profiles.
- The challenges insurers face with the adoption of this model, particularly in terms of regulatory hurdles and risk management.
The study also discusses the potential for on-demand insurance to disrupt traditional market dynamics, bringing new opportunities and challenges to the industry. By examining these factors through the lens of market equilibrium, the authors offer valuable insights for both academics and professionals interested in the future of insurance.
We invite you to read the full article to better understand the exciting changes happening in the insurance industry and the role on-demand insurance will play in shaping its future.
Abstract
The article presents the definition, idea, development, and current state of a new business model known as on-demand insurance which has been in existence since the early 21st century. Moreover, the article does not only describe the premises behind the development of this new method of creating value for clients of insurance companies and the opportunities that appear in the market but also addresses the challenges that insurance providers can encounter. Based on the analysis and available source materials, the most interesting types of these insurance products and the entities that include such products in the portfolios were presented. In addition, some new regulatory challenges and trends were described.
The purpose of this study is to analyse the behaviour of the insurance market after the introduction of on-demand products in light of the classical definition of equilibrium in a competitive insurance market under conditions of information asymmetry.
The authors analysed the economic implications of implementing on-demand insurance, demonstrating its potential to enhance the overall welfare of the insured population by increasing utility for certain risk groups of clients.
Keywords:
insurtech, on-demand insurance, RS model, market equilibrium
JEL Classification:
G22, G52, D58
Credits
| Authors | Łukasz Kuryłowiczm Jakša Krišto |
| Date | 2024 |
| Pages | 39-56 |
| Type | Journal article |
| ISSN | 0137-7264 |
| DOI | 10.33995/wu2024.2.3 |
| How to cite | Kurylowicz L., Kristo J. (2024). On-demand insurance: idea, development, impact on market equilibrium. Insurance Review, 2/2024, pp. 39-56. |
Full text
Full text is available at ResearchGate