Do InsurTech startups disrupt the insurance industry?

•This study employs a more specific and unique InsurTech-specific dataset to examine the extent of the disruption of InsurTech startups in the insurance industry.•The findings reveal that InsurTech has had a substantial disruptive impact on the competitiveness of incumbents while exerting a weakly stimulating effect on premium growth.•Firm size is critical in determining the degree of stimulation.•Smaller insurers with limited investments in InsurTech are more vulnerable to disruption. Since 2010, InsurTech development has significantly impacted the insurance industry. This study employs an InsurTech-specific dataset, including the number of deals, dollar volume of funding, and human capital investment, to examine the extent of the disruption of InsurTech startups in the insurance industry. The findings reveal that InsurTech has had a substantial disruptive impact on the competitiveness of incumbents while exerting a weakly stimulating effect on premium growth. The evidence indicates that firm size is critical in determining the degree of stimulation. Specifically, smaller insurers with limited investments in InsurTech are more vulnerable to disruption.