Insurtech in Europe: identifying the top investment priorities for driving innovation


Financial Innovation, vol.10, no.1, 2024 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 10 Issue: 1
  • Publication Date: 2024
  • Doi Number: 10.1186/s40854-023-00541-y
  • Journal Name: Financial Innovation
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Keywords: Financial innovation, Health insurance, Insurtech, Pricing
  • Istanbul Medipol University Affiliated: Yes


The purpose of this study is to determine the essential indicators to improve insurtech systems and select the most critical alternative to increase insurtech-based investments in European countries. A novel fuzzy decision-making model is generated by integrating entropy and additive ratio assessment (ARAS) techniques with spherical fuzzy sets. First, the indicators are weighted using spherical fuzzy entropy. Then, the alternatives are ranked using spherical fuzzy ARAS. The alternatives are also ranked with the spherical fuzzy technique for order of preference by similarity to the ideal solution methodology. The main contribution of this study is that it would help investors to take the right actions to increase the performance of insurtech investments without incurring high costs. Another important novelty is that a new fuzzy decision-making model is proposed to solve this problem. The results of the two models are quite similar, proving the validity and coherency of the findings. It is found that pricing is the most critical factor that affects the performance of insurtech investments. Insurtech companies are required to make accurate pricing by conducting risk analyses to increase their profits and minimize their risks. Additionally, according to the ranking results, big data are the most appropriate way to improve the performance of insurtech investments in Europe. Big data analytics helps companies learn more about the behavior of their customers. By analyzing data about their customers’ past transactions, companies can provide more convenient services to them. This would increase customer satisfaction and enable companies to achieve long-term customer loyalty.