The effects of technology adoption on organisational performance for insurance brokers

Abstract

Globally, the insurance industry in developing countries is regarded as one of the most old-fashioned sector in terms of adopting technology disruptions. It mainly hinges and relies on in-person meetings. However, digital transformation has changed that, as players in the insurance industry are beginning to adopt new digital technologies such as insurtech in order to remain relevant to the present and future landscape of the market. Due to the high operating expenses of existing systems and general lack of motivation, the insurance industry has always been hesitant to embrace new technologies. The main objective of this study was to assess the effect of technology adoption on organisational performance for the insurance Brokers in Botswana. This study utilized the positivism research philosophy. Data was collected from 101 registered and licensed Insurance Brokers drawn from NBFIRA 2022 database. Spearman Rank correlation was used to measure the monotonic nexus between technology readiness and internal expertise on organisational performance of Insurance Brokers in Botswana. Results of the study revealed that there is an insignificant weak positive correlation between technology readiness and organisational performance. The results also showed that there is a moderate positive relationship between the internal expertise and organisational performance. The study findings further indicated that technology adoption has improved and has the potential to improve the organisational performance of insurance brokers. The implications of these results in relation to management theory, policy, and practice and for future research were also discussed and supported. The study recommended that the government must support insurance companies with finance and other resources which will help the players in the insurance sector to sharpen their internal expertise through training and development, reskilling, recruitment, acquiring latest technologies that promote digital transformations. Proper ICT infrastructures must be put in place to facilitate technology adoption and readiness.