The Impact of Insurtech on Insurance Inclusion: A Systematic Literature Review

Abstract

Changing risk dynamics and the demand for more personalized, technology-driven services have spurred innovation in insurance through Insurtech, reshaping how insurance is supplied, purchased, and managed. This paper systematically reviews the impact of Insurtech on insurance inclusion, guided by the PRISMA-P protocol. The review finds strong evidence that Insurtech enhances insurance inclusion by lowering transaction costs, improving accessibility, and broadening market participation. These effects are most visible in short-term insurance, where digital platforms and tailored products reach previously underserved populations. Beyond this primary finding, the review highlights how insurance inclusion is conceptualized and measured in the literature. Quantitative measures typically include penetration rates, density, and the proportion of households with insurance coverage, while broader indices account for availability, usage, and accessibility of insurance services. Qualitative approaches often emphasize mismatches between the products offered and those needed, particularly for vulnerable groups. Similarly, studies of Insurtech adopt both demand-side indicators (such as product uptake and coverage per user) and supply-side measures (including patents, capital inflows, and innovation outputs). These insights suggest that fostering Insurtech development, while addressing regulatory, access, and equity concerns, can significantly improve insurance inclusion and narrow protection gaps.