Digital technology in insurance

Abstract

Under current conditions a company can rely on maintaining competitive positions only with proper use of information technology. This is important for companies operating in the field of financial intermediation, where it is important to use modern technologies to promote their products, ease the access to users, and accounting in accordance with IFRS and the regulator. The development of IT-technologies is at a high level in the banking and stock business. The insurance business is currently receiving opportunities for a technological breakthrough. The launch of mandatory sales of electronic liability insurance policies for motorists since the beginning of 2017 has accelerated digitization of the insurance market. The share of companies selling online policies increased to 69%. At the same time, an increase in sales of liability insurance electronic policies for motorists will contribute to further multiple increases in the volume of direct insurance. 85% of insurance companies use IT solutions in the sales process. Currently, 75% of insurance companies are engaged in the introduction of new IT products and solutions. Despite of the fact that the launch of electronic liability insurance for motorists has already demanded for significant investments in the development or improvement of IT systems from insurance companies, most of them continue to invest in new technologies. In this regard, this contribution is to study the impact of information technology on the development of direct insurance in Russia. The leading approach in the study was the method of covariance analysis (Ancova model), which allowed taking into account both quantitative and qualitative variables, as well as homogeneous and heterogeneous statistical data. The contribution reveals the relationship between the introduction of electronic policy systems in the company and the amount of insurance premiums. The study covers a group of the largest insurers in Russia. The research materials are of practical importance for insurers, because it gives the concept of a correlation between business digitalization and its level of profitability.