Current trends in insurance market digitalization

Abstract

The insurance market is currently transforming due to the widespread introduction of digital technologies. Digitalization is a global trend in the modern insurance market, involving the use of the latest technologies to develop innovative insurance products, minimize insurance risks, meet customer needs, and increase the efficiency of insurance activities. This study aims to examine the impact of global digital transformation on the insurance sector and analyze the extent to which digital technologies are utilized in insurance activities. The analysis reveals that both domestic and foreign scholars are increasingly focusing on the integration of digital technologies into the insurance industry. The article explores the current trends in the digitalization of the insurance market and outlines how insurers are utilizing innovative business processes to improve their operations. The penetration of digitalization into the domestic insurance market was assessed, and the presence of digital elements in the top 10 insurance companies of Ukraine was analyzed. The conclusion was drawn that the introduction of innovations has begun to facilitate the interaction of insurers with customers and optimize their processes. The next step was to assess the trends in the development of InsurTech, a component of financial technology. The paper presents a SWOT analysis of InsurTech implementation in the insurance industry, identifying its strengths, weaknesses, opportunities, and threats. It also analyzes the state and dynamics of investments in insurance technology from 2019 to 2023, showing a positive upward trend in global investments every year. The article analyzes the distribution of investments among individual countries, with the United States providing the largest funding. It also examines the innovative developments of InsurTech and their advantages in insurance activities. The main digital trends for the insurance market of Ukraine are suggested in the conclusions of the work.