Pandemic Digitalization of the Insurance Business

Stoyan Kirov

Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, 2021, vol. 10, issue 1, 72-79

Abstract: COVID-19 changed not only the insurance distribution, but it created the preconditions for technological growth of the insurance business. Against the background of all the negative consequences of the pandemic, incl. increasing health and economic risks, reduce the risk tolerance of consumers. That explains the increased interest in insurance products and hence the growing market shares of insurance companies. However, increased demand has its digital price. Consumers want fast, remote and personalized service in an online environment. Modern users may refuse to visit an insurance office or standardized product. The pandemic managed to radically change people's habits and needs in a short time which found insurers unprepared to adapt to them. For many years the insurance industry delayed technological innovation and was conservative about digital transformations. It is the reason why insurers are now vulnerable and at risk of failing to keep up with new trends. In this context the research seeks to outline the main technological areas in which the insurance business must develop in order to be successful. Unfortunately the digitalization of distribution channels is faster than product innovations, which is a significant problem for successful market penetration.

Keywords: digital insurance; insurance technologies; InsurTech; insurance innovations; business models; digital transformation; digital customer experience. (search for similar items in EconPapers)
JEL-codes: G22 O32 (search for similar items in EconPapers)
Date: 2021
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