The Impact of Digitalization on Growth and Transformation of the Insurance Sector

It is no secret that in the coming years, the so-called Insurance Technology will be able to largely squeeze the traditional insurance market. According to many experts, it is mobile technologies that will become a real catalyst for the development of the industry. The facts and arguments presented in the study confirm the importance of digitalization of insurance. Innovation has become even more popular, especially with the need to translate all processes into an online format. The study solved the goals and objectives of determining the main trends in the transformation of the global insurance sector. The factors that influence the innovative strategies of insurance companies are identified and the main trends are evaluated. Based on a study of the innovative experience of the banking sector, a comparison and forecast were made for the further development of the digital insurance market. The above analysis of banking experience indicates that after the economic crisis and recession, the market is substantially transformed, new companies take the lead, displacing inflexible competitors, and as banking experience has shown, those who focus on innovation as the key become leaders priority of their development. In this regard, the InsurTech market of Russia was considered in the work. The current success of InsurTech startups is primarily due to its maximum simplicity in terms of accessibility, transparency and digitalization. These companies give customers products that are easy enough to understand, buy and use. This is a strong competitive advantage over traditional insurance companies, whose products are still complex and inflexible, and the processes are already outdated. Insurance startups occupy a small share of the general market, and so far cannot completely overcome regulatory requirements and standards. The development of digital insurance is still at a very early stage, but it is the huge fintech experience and accumulated expertise in digitalization of banks that allows it to develop more dynamically and quickly. An econometric study was also conducted to predict the performance of insurance players in the near future.