IMPACT OF TECHNOLOGY ADOPTION ON PRICING EFFICIENCY AND RISK MANAGEMENT IN THE NON-LIFE INSURANCE SECTOR

Abstract

Despite the growing adoption of digital technologies, pricing inefficiency remains a persistent challenge in Nigeria’s non-life insurance sector. This study examines the impact of technology adoption, measured through IT investment intensity, digital channel penetration, and InsurTech collaboration density, on pricing efficiency and risk management performance. Using an ex post facto research design, data were collected from 20 registered non-life insurance firms between 2015 and 2024 and analyzed through panel regression analysis. Descriptive statistics and diagnostic tests, including multicollinearity, heteroskedasticity, and the Hausman specification test, confirmed the suitability of the Fixed Effects Model. The empirical findings reveal that IT investment intensity, digital channel penetration, and InsurTech collaboration density each have a positive and significant effect on pricing efficiency, demonstrating that technology-driven practices enhance premium accuracy and underwriting effectiveness. The results align with the Resource-Based View (RBV) and Technology–Organization–Environment (TOE) frameworks, underscoring that technological resources are essential for improving competitive and operational performance. The study concludes that technological integration enhances pricing transparency, accuracy, and market competitiveness in the Nigerian non-life insurance industry. It recommends continuous IT infrastructure investment, broader digital platform utilization, and deeper collaboration with InsurTech firms to sustain pricing efficiency and strengthen sectoral resilience in an increasingly digital financial environment.