Innovations in insurance: role, challenges, and advantages of digitization

Abstract

Theoretically substantiate the concept of digitalization and, from a practical point of view, determine the role of digitalization in insurance, as well as identify the problems and advantages of digitalization in this direction.

Tasks. Justify the concept of «digitalization», determine the role of digitalization in insurance, consider the principles of developing a strategy in the context of digitalization, and also identify the problems and advantages of digitalization in insurance.

Methodology. When conducting the research, the dialectical method of cognition was taken as a basis. Using logical, systematic and comparative approaches, including the method of analysis and generalization.

Results. The concept of digitalization is substantiated, the history of the formation of digitalization is briefly described, the role of digitalization in insurance is determined, and the problems and advantages of digitalization in insurance are identified. It has been proven that in order to develop a digitalization strategy in insurance, it is necessary to adhere to 5 principles — the principle of analysis and assessment of the current state; the principle of identifying digital opportunities and needs; the principle of developing a digital transformation strategy; the principle of implementing digital transformation and the principle of assessing the effectiveness of digital transformation.