Abstract

Pandemic affects insurance industry both directly, via health shocks, and indirectly, via financial shocks, as well as via shift in the policyholder behavior and distribution channels. The paper contributes to understanding the impact of COVID-19 on the global and Ukrainian insurance market, provides insights into implementing digital measures and technologies for insurers, in response to changes caused or accelerated by pandemic, building the capabilities to survive and exploit the changing market.A research of the the dynamics of Ukrainian insurance market changes during the quarantine period was conducted, the main tech achievements of leading insurers were investigated. The paper highlights priorities that insurers need to address in the wake of pandemic (distribution destruction, reinvention of the customer experience, cost structure changes, new protection offerings and new revenue pools), deals with different business strategies that insurers can follow to adopt and pivot in the low-touch economy and reveals new opportunities to extend insurers’ protection offerings and establish new sources of revenue emerged with digital transformation. AcknowledgmentThis project was financed by the Ministry of Science and Higher Education of the Republic of Poland as part of the «Regional Initiative of Excellence” Programme for 2019–2022. Project No. 021/RID/2018/19. Total project budget: PLN 11 897 131,40.

Highlights

  • For the insurance industry, pandemic underwriting losses will end up costing around $ 107 billion, corresponding to the disastrous years of 2017 and 2005

  • We have identified four broad strategic directions Most innovations in insurance industry today are that market participants have been developing in focused on three main strategies: Ukraine: innovators insurers

  • As COVID-19 spread across the globe, insurers were forced to adopt digital measures that would have under normal circumstances taken years to implement

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Summary

Introduction

Pandemic underwriting losses will end up costing around $ 107 billion, corresponding to the disastrous years of 2017 and 2005. To adopt and strive in new conditions of low-touch economy it’s extremely important to identify key changes in the insurance industry due to pandemic, and to reveal the possibilities of digital technologies in improving the effectiveness of the insurance business model.

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