Pandemic as an accelerator of digital transformation in the insurance industry: evidence from Ukraine

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Pandemic affects insurance industry both directly, via health shocks, and indirectly, via financial shocks, as well as via shift in the policyholder behavior and distribution channels. The paper contributes to understanding the impact of COVID-19 on the global and Ukrainian insurance market, provides insights into implementing digital measures and technologies for insurers, in response to changes caused or accelerated by pandemic, building the capabilities to survive and exploit the changing market.
A research of the the dynamics of Ukrainian insurance market changes during the quarantine period was conducted, the main tech achievements of leading insurers were investigated. The paper highlights priorities that insurers need to address in the wake of pandemic (distribution destruction, reinvention of the customer experience, cost structure changes, new protection offerings and new revenue pools), deals with different business strategies that insurers can follow to adopt and pivot in the low-touch economy and reveals new opportunities to extend insurers’ protection offerings and establish new sources of revenue emerged with digital transformation.

Acknowledgment
This project was financed by the Ministry of Science and Higher Education of the Republic of Poland as part of the «Regional Initiative of Excellence” Programme for 2019–2022. Project No. 021/RID/2018/19. Total project budget: PLN 11 897 131,40.

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    • Figure 1. Dynamics of gross insurance premiums in Ukraine over the period of 2002–2020
    • Figure 2. Number of insurers and volume of their total assets (billion UAH) in Ukraine over the period of 2016–2020
    • Figure 3. Dynamics of gross insurance premiums in Ukraine for 9 months 2017–2020, thousands UAH
    • Figure 4. Dynamics of insurance policies number for 9 months 2017–2020
    • Figure 5. Dynamics of the number of electronic auto liability insurance policies in Ukraine for the first half of 2019–2020
    • Figure 6. Respondents’ answers for the question “How the situation in your company has changed compared to the previous year?”
    • Figure 7. Opportunities for insurer carriers to adopt and pivot in the low-touch economy
    • Table 1. Ukrainian insurance market concentration in terms of gross premium in the first half of 2019–2020
    • Conceptualization
      Oleksandra Shevchuk
    • Formal Analysis
      Oleksandra Shevchuk, Jolanta Stanienda
    • Investigation
      Oleksandra Shevchuk
    • Supervision
      Oleksandra Shevchuk, Jolanta Stanienda
    • Writing – original draft
      Oleksandra Shevchuk, Jolanta Stanienda
    • Writing – review & editing
      Oleksandra Shevchuk, Iryna Kondrat
    • Data curation
      Iryna Kondrat
    • Project administration
      Iryna Kondrat
    • Visualization
      Iryna Kondrat, Jolanta Stanienda