Innovations in the insurance market of a developing country: Case of Ukraine

  • Received September 10, 2020;
    Accepted November 25, 2020;
    Published December 2, 2020
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.17(4).2020.17
  • Article Info
    Volume 17 2020, Issue #4, pp. 175-188
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This work is licensed under a Creative Commons Attribution 4.0 International License

Modern insurance business, including in developing countries, is associated with the introduction of innovations. The purpose of this paper is to clarify the features of the insurance market’s innovation in Ukraine by reviewing the literature and analytical data on the market as a whole and its individual participants. The results show that innovations implemented in the insurance market can be classified according to certain characteristics, which provides opportunities for its empirical study. The analysis reveals that the peculiarities of the innovative development of the Ukrainian insurance market are determined by many factors, among which digitalization and increased risks due to the COVID-19 pandemic are the main ones today. Based on the analysis of leading insurance companies’ practice, it is concluded that they implement only a limited amount of innovations, mainly of incremental and combinatorial types, and do not actively use modern communication channels with consumers. The results highlight the need for insurance and FinTech companies to cooperate in the innovation ecosystem, which is still being formed in the Ukrainian insurance market. The study also considers the possibility of using a system of indicators to assess the innovativeness of insurance companies.

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    • Figure 1. Dynamics of the gross insurance premiums to GDP ratio in Ukraine in 2010–2019
    • Figure 2. Dynamics of some Ukrainian insurance market’s indicators in 2015–2019
    • Figure 3. Dynamics of some performance indicators of PZU Ukraine in 2016–2019
    • Figure 4. Dynamics of some innovation indicators of PZU Ukraine in 2016–2019
    • Table 1. Types of insurance companies’ process innovations
    • Table 2. Indicators for assessing the innovation of an insurance company
    • Table A1. Product and process innovations of TOP10 Ukrainian risk insurance companies (as of mid-2020)
    • Conceptualization
      Svitlana Yehorycheva, Tetiana Hudz
    • Formal Analysis
      Svitlana Yehorycheva, Oksana Palchuk
    • Methodology
      Svitlana Yehorycheva, Tetiana Hudz
    • Supervision
      Svitlana Yehorycheva, Natalia Boiko
    • Writing – original draft
      Svitlana Yehorycheva, Iryna Fysun
    • Data curation
      Iryna Fysun
    • Investigation
      Iryna Fysun, Natalia Boiko
    • Validation
      Tetiana Hudz, Oksana Palchuk
    • Writing – review & editing
      Tetiana Hudz, Oksana Palchuk, Natalia Boiko
    • Project administration
      Oksana Palchuk, Natalia Boiko
    • Visualization
      Oksana Palchuk, Natalia Boiko