Abstract
This research paper explores the impact of digital transformation on the business models of insurance firms, with a specific focus on the adoption of digital technologies and the role of InsurTechs. The study addresses the challenges and risks associated with digitalisation, emphasising the need for effective risk management strategies. Through a comprehensive literature review, the paper discusses the evolving landscape of digital business models, highlighting the central role of effective value creation, delivery, and capture. It explores the transformative impact of InsurTechs on traditional insurers, highlighting collaborations and partnerships as a strategic response to the changing landscape. The study employs the diffusion of innovation theory to analyse the adoption of digital technologies within insurance firms, considering factors such as compatibility, relative advantage, and complexity. Using a qualitative research design, the paper presents findings from semi-structured interviews with middle managers in a local insurance firm. The participants share their experiences and perspectives on the changes in the business model resulting from digital transformation. The research contributes valuable insights into the challenges, opportunities, and implications of digitalisation in the insurance sector. The findings revealed that while the insurance organisation understudy is adopting some digital technologies and changing its business model, a lot of work still needs to be done to increase the digital transformation process in the firm. The firm was recommended to redesign or redefine the new business models as opposed to making minor changes to the model as this impedes the realisation of a full digital transformation.