Title: Business model innovation in the insurance industry: barriers faced by incumbents

Authors: Tim Mosig; Claudia Lehmann; Kathrin M. Moeslein

Addresses: Center for Leading Innovation and Cooperation (CLIC), HHL Leipzig Graduate School of Management, Jahnallee 59, 04109 Leipzig, Germany ' HHL Leipzig Graduate School of Management, Jahnallee 59, 04109 Leipzig, Germany ' Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU), Lange Gasse 20, 90403 Nuremberg, Germany

Abstract: The emergence of FinTechs, InsurTechs and the ever-increasing regulatory pressure have accelerated insurance companies' need to innovate their business models and to find novel sources of value creation and cost-saving. This study provides a deep insight into various internal and external barriers influencing business model innovation in the German insurance industry. Results of interviews conducted with 23 experts working in established insurance firms operating in Germany showed that internal barriers constitute more of a hindrance than external barriers. This dynamic holds especially true for regulations, as the fear of breaching external regulation fosters the development of even stronger internal rules that fundamentally impede business model innovation.

Keywords: business model innovation; insurance industry; incumbents; barriers; regulations; data protection.

DOI: 10.1504/IJEIM.2021.120544

International Journal of Entrepreneurship and Innovation Management, 2021 Vol.25 No.6, pp.391 - 419

Accepted: 14 Jul 2021
Published online: 25 Jan 2022 *

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