DETERMINANTS OF DEVELOPMENT OF INNOVATIONS IN THE INSURANCE BUSINESS
Abstract
Czerniak J., Klapkiv L. DETERMINANTS OF DEVELOPMENT OF INNOVATIONS IN THE INSURANCE BUSINESS
Purpose. The aim of the article is to presentation the main factors of development of innovations in the world and Ukrainian insurance market. The solution of this goal involves identifying the factors influencing the development of innovations and conducting a qualitative analysis of the influence of the selected factors on the level of innovation of the insurance business.
Methodology of research. Achieving the goal was based on general scientific methods of cognition. The method of analysis and observation is used to identify the factors of innovation activity in the insurance business, the method of systematization is used to group the main factors of the development of innovations in the insurance market, a graphical method - to visualize the results of the study.
Findings. The external and internal factors of development of innovations in the insurance business are revealed and their qualitative analysis is carried out. The key sources of innovations in insurance are outlined: firstly, technological push and secondly, innovations caused by the features of the insurance market (market pull). In our opinion, it is also appropriate to break down the factors of demand and supply factors. It is noted that the need for implementation of innovative solutions is determined by two key features of insurance: the constant processing of large amounts of data and asymmetry of information, which may be a source of risk in insurance activities. A significant role of technological progress in solving the problem of asymmetry of information and improving the relationship with new generations of consumers of insurance services is noted.
Originality. The selected determinants of innovation (in particular, asymmetry of information and generation change) in the insurance business are analyzed.
Practical value. The research results can be taken into account when forming the strategy of development of the insurance market.
Key words: Insurance companies; innovations; technological progress; asymmetry of information; generation.
Keywords
Full Text:
References
Hocking J., Wood A., Dally N. et al. (2014), Insurance and Technology: Evolution And Revolution in a Digital World, “Blue Paper” Morgan Stanley Research, available at: www.bcgperspectives.com/Images/evolution_revolution_how_insurers_stay_relevant_digital_world.pdf (access date: July 25, 2017).
Denysenko, M. and Korgun, O. (2015), “Innovations on the insurance market of Ukraine”, Investycii: praktyka ta dosvid, no. 21, pp. 79–82.
Kozmenko, O. et al. (2014), “4 P” marketungy strachovych kompanii [„4 P” of marketing of the insurance companies], Universytetska knuga, Sumy, Ukraine, 431 p.
Motashko, T. (2016), “Development of world insurance market in the conditions of digitalization”, Bulletin of Taras Shevchenko National University of Kyiv. Economics, no. 182, pp. 18–24.
Pikus, R. and Zakolodiaznyi V. (2015), “Innovation development of insurance activity as a basis of it effectivity increase”, Bulletin of Taras Shevchenko National University of Kyiv. Economics, no. 3, pp. 72–80.
Prykaziuk, N. and Motashko, T. (2016), New opportunities for development of insurance system of Ukraine, Ukrainian Journal of Applied Economics, no. 4, pp. 177–192.
Tereshchenko, H. and Lys, N. (2017), Global innovation hipercompetition and it influence on the activity of native insurance companies, Naukovi pratsi NDFI, no. 2, pp. 88–96.
Nechyporuk, L. (2016), Innovations on the market of the insurance service in the conditions of network economy, Contemporary trends in the economy and the public sector: monography, The Academy of Management and Administration in Opole, Opole, Poland, pp. 165–174.
Desyllas, P. and Sako, M. (2013), Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance, Research Policy, no. 42(1), Iss. 1, pp. 101–116.
Nicoletti, B. (2016), Digital Insurance. Business Innovation in the Post-Crisis Era, Palgrave Macmillan UK, 339 p.
Pearson, R. (1997), Towards an historical model of services innovation: the case of the insurance industry, Economic History Review, vol. 2, pp. 235–256.
Peterson, R., Rudelius, W. and Glenn, W. (1972), Spread of Marketing Innovations in a Service Industry Source, The Journal of Business, vol. 45, no. 4, pp. 485–496.
Schumpeter, J. (1934), The theory of economic development. An inquiry into profits, capital, credit, interest, and the business cycle. Cambridge: Harvard University Press (Reprint 1983: Transaction Publishers), available at: https://books.google.pl/books?id=OZwWcOGeOwC&printsec=frontcover&hl=uk#v= onepage&q&f=false (access date January 13, 2018).
Oslo Manual (1992), Guidelines for Collecting and Interpreting Innovation Data, OECD Publications, available at: www.oecd.org (access date September 20, 2017).
Druker, P. (2002), Innovation and Entrepreneurship: Practice and Principles. HarperCollins Publishers, UK, 277 p.
Anderloni, L. and Bongini, P. (2009), Is Financial Innovation Still a Relevant Issue? Financial Innovation in Retail and Corporate, red. L. Anderloni, D. Llewellyn, R. Schmidt, Edward Elgar Publishing, pp. 41–63, available at: www.elgaronline.com/view/9781848440401.00003.xml (access date January 13, 2018).
The Verkhovna Rada of Ukraine (2002), The Law of Ukraine “Innovation activity” dated 4 July 2002 No 40, available at: http://zakon3.rada.gov.ua/laws/card/40-15 (access date September 20, 2017).
Big Data: Concepts, Methodologies, Tools, and Applications (2016), Information Resources Management Association (USA), IGI Global, available at: https://books.google.pl/books?id= BKEoDAAAQBAJ&printsec=frontcover&hl=uk#v=onepage&q&f=false (access date January 13, 2018).
The statistic, “Number of network connected devices per person around the world from 2003 to 2020”, available at: www.statista.com/statistics/678739/forecast-on-connected-devices-per-person/ (access date January 13, 2018).
Aon, “Global Insurance Market Opportunities. Insurance risk study” (2016), available at: http://aon. com/2017-global-insurance-market-opportunities-report/index.html (access date January 13, 2018).
Werner, G. (2017), “Technology risk in insurance: why carriers can't stay stationary for long”, available at: www.willistowerswatson.com/en/insights/2017/09/Technology-risk-in-insurance-why-carriers-cannot-stay-stationary-for-long (access date January 13, 2018).
Refbacks
- There are currently no refbacks.
INNOVATIVE ECONOMY 2006 - 2024