Introduction of digital innovations as a factor in the development and modernization of the insurance market
https://doi.org/10.35854/1998-1627-2023-1-33-44
Abstract
Aim. The presented study aims to investigate major problems associated with the introduction of digital innovations in the insurance industry; to determine the role and prospects for the development of digitalization in insurance; to systematize information technologies and prioritize the ones that best meet the strategic goals of insurers.
Tasks. The authors explore the development stages of digital innovations in the insurance sector; identify factors affecting the improvement of insurance business management; assess and substantiate the need to introduce innovative digital products in insurance.
Methodology. This study uses general and private scientific methods, as well as formal and logical approaches to analyze the contemporary insurance sector and to identify major directions for the development of digital innovations in the insurance business.
Results. Factors affecting the improvement of insurance business management are identified. Information technologies and tools are systematized and the ones that best meet the strategic goals of insurers are prioritized.
Conclusions. Considering the current economic situation and fierce competition, it is the right time for insurance companies to improve the quality, speed, and breadth of innovation. Today, a customer-oriented, personalized approach to the consumer is very important as it makes it possible to retain existing policyholders and attract new ones. Companies need to make the most of the opportunities offered by new digital tools and technologies to reach a new level of interaction with customers. The proposed steps to improve innovation will help to plan and implement innovative projects more efficiently.
About the Authors
V. I. Khabarov
Moscow Financial and Industrial University “Synergy”
Russian Federation
Russian Federation
Vladimir I. Khabarov
D.Sc. in Economics, Professor, Professor at the Department of Organizational Management, Honorary Worker of Higher Professional Education of the Russian Federation, Honorary Worker of Science and Technology of Moscow
80 Leningradskiy Ave., bldg. E, Moscow 125190
M. S. Kolbina
Akrikhin
Russian Federation
Russian Federation
Maria S. Kolbina
PhD in Medicine, мedical мanager
6 Martenovskaya St., bldg. 3, office 47, Moscow 111399
I. Yu. Kushelev
Moscow Financial and Industrial University “Synergy”
Russian Federation
Russian Federation
Ivan Yu. Kushelev
postgraduate student at the Department of Organizational Management
80 Leningradskiy Ave., bldg. E, Moscow 125190
References
1. Insurtech’s place in a COVID-19 world: Who will benefit as insurers accelerate innovation efforts? KPMG. 2021. URL: https://home.kpmg/dp/en/home/insights/2020/10/insurtechsplace-in-covid-19-world.html (accessed on 25.12.2022).
2. Bar Am J., Furstenthal L., Jorge F., Roth E. Innovation in a crisis: Why it is more critical than ever. McKinsey and Company. Jun. 17, 2020. URL: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/innovation-in-a-crisis-why-it-is-morecritical-than-ever (accessed on 25.12.2022).
3. Purushotham M. et al. Understanding the product development process of individual life insurance and annuity companies. Schaumburg, IL: Society of Actuaries; 2017. 221 p. URL: https://www.soa.org/globalassets/assets/Files/Research/understanding-product-development-report.pdf (accessed on 20.11.2022).
4. The social enterprise in a world disrupted: Leading the shift from survive to thrive. 2021 Deloitte human capital trends. London: Deloitte; 2021. 64 p. URL: https://www2.deloitte.com/content/dam/insights/us/articles/6935_2021-HC-Trends/di_human-capital-trends.pdf (accessed on 25.12.2022).
5. Huckstep R. Metromile: The pioneers of digital engagement insurance. Metromile. Nov. 29, 2017. URL: https://www.metromile.com/blog/metromile-pioneers-digital-engagement-insurance/ (accessed on 25.12.2022).
6. Werth O., Schwarzbach C., Rodríguez Cardona D., Breitner M.H., Schulenburg J.-M. Influencing factors for the digital transformation. Zeitschrift für die gesamte Versicherungswissenschaft. 2020;109(2-4):155-179. DOI: 10.1007/s12297-020-00486-6
7. Kim J., Song E. The effects of blockchain technology benefits on acceptance intentions of blockchain insurance services: Based on the UTAUT Mode. Journal of Information Technology Services. 2018;17(4):163-169. DOI: 10.9716/KITS.2018.17.4.163
8. Adamova M., Boudet J., Kalaoui H., Segev I. How traditional insurance carriers can disrupt through personalized marketing. Washington, DC: McKinsey & Company; 2018. 8 p. URL: https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/How%20traditional%20insurance%20carriers%20can%20disrupt%20through%20personalized%20marketing/How-traditional-insurance-carriers-can-disrupt-through-personalized-marketing-final.pdf (accessed on 20.11.2022).
9. Investments in the global fintech and insurtech sector grew to $112 billion in 2018. Forinsurer. 2018. URL: https://forinsurer.com/news/19/02/21/36611 (accessed on 20.11.2022). (In Russ.).
10. Bohnert A., Fritzsche A., Gregor S. Digital agendas in the insurance industry: The importance of comprehensive approaches. The Geneva Papers on Risk and Insurance — Issues and Practice. 2019;44(3):1-19. DOI: 10.1057/s41288-018-0109-0
11. Eling M., Lehmann M. The impact of digitalization on the insurance value chain and the insurability of risks. The Geneva Papers on Risk and Insurance — Issues and Practice. 2018;43(3):359-396. DOI: 10.1057/s41288-017-0073-0
12. Eckert C., Osterrieder K. How digitalization affects insurance companies: Overview and use cases of digital technologies. Zeitschrift für die gesamte Versicherungswissenschaft. 2020;109(7):333-360. DOI: 10.1007/s12297-020-00475-9
13. Grize Y.-L., Fischer W., Lützelschwab C. Machine learning applications in nonlife insurance. Applied Stochastic Models in Business and Industry. 2020;36(4):523-537. DOI: 10.1002/ asmb.2543
14. Pettersson D., Lilliesköld J., Händel P., Agerman J. Usage-based auto insurance on the Swedish market: A case study. In: PICMET’19 — Technology management in the world of intelligent systems: Proc. Portland Int. conf. on management of engineering and technology (Portland, OR, August 25-29, 2019). Piscataway, NJ: IEEE; 2019:8893870. DOI: 10.23919/PICMET.2019.8893870
15. Bryzgalov D.V. Digitalization of underwriting in the Russian insurance market. ETAP: ekonomicheskaya teoriya, analiz, praktika = ETAP: Economic Theory, Analysis, and Practice. 2020;(2):90-102. (In Russ.). DOI: 10.24411/2071-6435-2020-10015
16. Röschmann A. Digital insurance brokers — old wine in new bottles? How digital brokers create value. Zeitschrift für die gesamte Versicherungswissenschaft. 2018;107(6):273-291. DOI: 10.1007/s12297-018-0413-6
17. Pooser D.M., Browne M., Arkhangelska O. Growth in the perception of cyber risk: Evidence from U.S. P&C insurers. The Geneva Papers on Risk and Insurance — Issues and Practice. 2018;43(2):208-223. DOI: 10.1057/s41288-017-0077-9
18. Zhabynets O. Data protection and information security of insurance companies. Economic Annals-XXI. 2014;143(7-8):32-35. URL: http://ea21journal.world/index.php/ea-v143-08/ (accessed on 20.11.2022).
19. Yiu E. Technology turbocharges Chinas access to health insurance amid coronavirus pandemic — for the price of a Starbucks coffee. South China Morning Post. Apr. 04, 2020. URL: https://www.scmp.com/business/china-business/article/3078273/technology-turbocharges-chinas-access-health-insurance-amid?module=perpetual_scroll_0&pgtype=article&campaign=3078273 (accessed on 20.12.2022).
20. Hollmer M. Future InsurTech venture financings could face a coronavirus slowdown. Сarrier Management. Mar. 19, 2020. URL: https://www.carriermanagement.com/news/2020/03/ 19/204555.htm (accessed on 20.12.2022).
21. Kolbina M.S., Kushelev I.Yu. Innovations in insurance in Russia: From theory to practice. In: Topical issues of modern scientific research. Proc. Int. sci.-pract. conf. Penza: Nauka i Prosveshchenie; 2022:150-155. (In Russ.)
Review
For citations:
Khabarov V.I., Kolbina M.S., Kushelev I.Yu. Introduction of digital innovations as a factor in the development and modernization of the insurance market. Economics and Management. 2023;29(1):33-44. (In Russ.) https://doi.org/10.35854/1998-1627-2023-1-33-44
Views:
537
