INSURTECH: FROM CONCEPT TO MARKET TRANSFORMATION

Abstract

This article examines conceptual approaches to the term “Insurtech,” its stages of development, and the ways in which it influences the insurance services market. Today, cutting-edge technologies are transforming the insurance industry through a wide range of effective application scenarios, demonstrating their transformative potential. Therefore, the relevance of this study is significant in terms of strengthening insurers’ competitive advantages, improving the efficiency of business processes, and enhancing the level of consumer protection. This explains the purpose of the study: to provide a theoretical foundation for the concept of Insurtech, its stages of development, and the ways in which digital technologies are influencing the transformation of the insurance services market. The research employs methods of analysis, synthesis, historical analysis, grouping, and comparison. The article examines the stages of Insurtech development from the perspective of their impact and role in the digital transformation of the insurance services market, outlining the essence and key areas of influence. The study examined key Insurtech technologies as the main drivers of development and their impact on insurers’ business processes, including artificial intelligence, blockchain technology, quantum computing, digital twins, data analytics, and others. Emphasis is placed on the fact that strategic partnerships between insurers and Insurtech companies are crucial, enabling insurers to utilize cutting-edge digital solutions enhanced by artificial intelligence and focused on customer needs, ensuring personalization, efficiency, and sustainable development. The dynamics of Global Insurtech funding have been analyzed. Growing investment trends underscore the importance of the Insurtech sector’s transformative potential. In addition, key areas of transformation in the insurance services market under the influence of Insurtech have been identified, with an emphasis on improving service quality standards (personalization), ecosystem orientation, and the impact on key business processes. The practical results of the study can serve as a foundation for further developments and the creation of a model of the transformational impact of Insurtech technologies on the insurance services market.