Chapter 16 Perceived Effectiveness of Digital Transformation and InsurTech Use in Malta: A Study in the Context of the European Union’s Green Deal

Purpose: The scope of this research is to conduct a study on the perceived effectiveness of developments in InsurTech, by determining online use integration in the Maltese insurance market. Methodology: To do this, the authors employed a self-administered questionnaire to which 471 participants responded on a 5-point Likert scale. We subjected the data collected from this questionnaire to statistical analysis, specifically, exploratory factor analysis (EFA) and multiple linear analysis using the Statistical Package for Social Science (SPSS) version 26. Results: EFA loaded best on five factors of insurance customers’ perceived effectiveness, which make up the effectiveness model (EM), namely ‘Factor 1 – Internal Process Enhancement’, ‘Factor 2 – Cost-Efficiencies’; ‘Factor 3 – Time-Sensitive Conditions’, ‘Factor 4 – The Contemporary Use of Artificial Intelligence and Marketing in Relation to Customer Service’ and ‘Factor 5 – Customer Relations and Application of InsurTech in Communication’. Moreover, multiple linear regression results show that the perceived effectiveness dimension – EM is statistically significantly related to online use in Malta. Practical implications: Therefore, it can be argued that the Maltese insurance sector is well prepared to meet the obligations and requirements of the European Green Deal. Findings shed light on the preparedness of the Maltese insurance market to accept innovative green proposals to go online with processes.