Change of business models of Ukrainian insurance companies in the conditions of COVID-19

Viktoriya Baranova,Valentyna Levchenko,Anastasiya Yermoshenko,Oksana Polinkevych,Vladimer Glonti

doi:10.21511/ins.12(1).2021.08

Abstract

Insurance companies form their own business models based on the interests of stakeholders. Changes in business models are due to the impact of COVID-19, deepening digitalization and customer orientation. Accordingly, the aim of the study is to systematize the approaches to business models of insurance companies using emerging market country (Ukraine) as an example, and to show the change in a business model according to the CANVAS approach under the influence pandemic. In accordance with the purpose of the study, business models of insurance companies were systematized and grouped into blocks: value-based, structural, complex, and strategic. The strategic block identifies strategic changes in the activities of insurance companies and reflects trends on the insurance market. With this in mind, business models of insurance companies should reflect the set of strategic decisions, their architecture, structure and facilitate the management of value creation operations on the insurance market. Business models have changed from traditional to innovative, hybrid and digital-oriented. The main changes in the business models of insurance companies are omnichannel communications, the launch of chatbots, Big Data, Mobile ID, Bank ID, online access to registers, Blockchain. The COVID-19 pandemic has led to a shift in business models towards socially responsible business and adherence to sustainable development goals.

Highlights

During the first waves of the pandemic, most countries tried to fight it by introducing quarantines and social distancing
The aim of the study is to systematize the approaches to business models of insurance companies using emerging market country (Ukraine) as an example, and to show the change in a business model according to the CANVAS approach under the influence pandemic
Of insurance companies, which applies to key it is natural that the business models of partners, which are online insurance platforms, these insurance segments should differ in terms marketplaces and search engines

Summary

INTRODUCTION

During the first waves of the pandemic, most countries tried to fight it by introducing quarantines and social distancing. The Kano model makes it possible to explore the follows the approach related to the feasibility of components of product or service quality through building business models of insurance companies the evaluation of attributes that directly affect cus- based on the approach of Kano and CANVAS. The research developed with the use of the Kano follows: and CANVAS models does not show the existence of hybridization of both models ( relat- clients (insurance contracts) – individuals and ing to the use of the Kano model’s results as input legal entities, reinsurers; in different blocks of CANVAS structuring and systematization to value business ideas) (Vicedo & products (product lines) – Compulsory civ-. Reinsurance Captive (legal entities + incoming incoming reinsurance premiums reinsurance) + personal – not less than from insurance: corporate 40% of insurance related and and other group premiums affiliated insurance contracts – physical not less than 70% of and legal insurance premiums entities not less than 70% of insurance premiums

Specialized

Diversified

Multi-channel

Although the model is built according to the

DISCUSSION

Findings

CONCLUSION