Feasibility Study Digitalization of Sales Process at the Insurance Company

The insurance market is an integral part of the market system, provides insurance protection to economic entities, and accumulates powerful funds of investment resources that can stimulate sustainable economic development. The Ukrainian insurance market is at the stage of development when the number of working insurers reduces while the range and quality of insurance services they provide the increase. Currently, the financial system of Ukraine is undergoing significant regulatory changes, as a result, the NBU is beginning to regulate the insurance market, which gives hope for increasing the quality of its participants. Trends in digitalization and digitalization, the use of modern technological innovations also push to transform the functioning of all participants in the insurance market of Ukraine in the direction of further growth and development. Unfortunately, in Ukraine digital transformation and usage of practical technological innovation in the insurance value chain across the insurance industry is still at a low level. Many processes in insurance companies are supported manually or semi-automated that cause operational inefficiency, lead to the costs increasing and simply doesn’t protect overall business for example when a change in one particular parameter, e.g. losing control over distribution channel, can cause the bankruptcy of insurance company, and this is what actually happened on Ukrainian market. In accordance with NBU’s White Paper “Future of Ukrainian insurance market regulation” [1], insurance market development is constrained by several factors as insurance companies’ liquidity problems, absence of clear business-model, risk management and corporate governance is quite low. During 2013 – 2018 some of big insurance groups, such as AEGON, AXA, SEB, AIG and HDI had left Ukraine among other things because of unfair competition. Thus, the purpose of the present project is to describe the business concept conducting feasibility study, where the part of value chain of an insurance company will be reengineeried towards actual implementation of the digital approach of the sales process on example of the Motor third party liability product. It should bring enhanced efficiency, transparency, and simplicity in terms of general business management. It is determined that in order to ensure the restructuring of the insurance business under conditions of the digital economy development, insurance company should implement such activities as: customer-oriented approach, search for partners in technology environment, creates an innovative culture and protect intellectual property.