DIGITIZATION OF INSURANCE VALUE CHAIN FOR COMPETITIVE ADVANTAGE IN NIGERIA: MODERATING ROLE OF FINANCIAL RESOURCE CAPABILITY
Abstract
This study examines the digitization of insurance value chain for competitive advantage in Nigeria and also attempts to determine if the relationship between digital insuring and competitive advantage can be moderated by financial resource capability. Given the low level of awareness, investment and adoption of digital technology for insurance business in Nigeria, it is, therefore, not surprising that the sector remains grossly underperforming and underdeveloped contributing a meagre 0.1 percent to the nation’s GDP. With brick-and-mortar insuring still in vogue in the Nigerian insurance sector, the quest for competitive advantage can only be a mirage while the industry may continue to lose lucrative businesses to the more focused, better capitalized and digitally transformed foreign competitors. The digital revolution that has taken over the conduct of business in every industry, including insurance is, perhaps, yet to be appreciated by Nigerian insurers. Consequently, the sector lags behind its foreign peers in the adoption and deployment of such digital technology tools like cloud computing, artificial intelligence, blockchain, Internet of Things, Big Data, telematics and drones technology for conducting insurance business. This research is a quantitative design that utilises the cross sectional survey strategy. It is anchored on a philosophical foundation of positivism and ontological orientation of objectivism. 20 insurance firms were sampled for the study using the stratified sampling technique. 280 questionnaires were distributed to the 20 sampled companies out of which 250 were returned and found usable for the study. Data was analysed using the Andy Hayes Process v3.3 for regression. Findings from the research revealed that a positive and statistically significant relationship exists between digital insuring and competitive advantage but the relationship between them is not significantly moderated by financial resource capability in the Nigerian insurance industry.
