Abstract
<jats:p>The article provides an in-depth analysis of the digitalization process within the insurance market, highlighting its role in transforming the financial sector and advancing the digital economy. It defines digitalization as a crucial element in enhancing the operational efficiency of insurance companies and in establishing new business models. The study examines modern technologies being integrated into insurance practices, focusing on big data, artificial intelligence, machine learning, blockchain, and the Internet of Things (IoT), and how these technologies influence automation, underwriting, risk assessment, and insurance claim settlement. The development of digital technologies in insurance is largely based on the implementation of innovative solutions for collecting, analyzing, processing, transmitting and securely storing data. In this direction, modern tools are actively used, covering a wide range of capabilities. In particular, an important place is occupied by interactive platforms for online insurance, mobile applications for simplifying access to services, as well as specialized software designed to increase the efficiency of business processes. Particular attention is paid to the implementation of network solutions for automating operations and the use of artificial intelligence technologies, which allow analyzing large volumes of data and offering personalized approaches for each client. Significant emphasis is placed on how the digital environment alters interactions between insurers and clients, fostering the growth of online insurance, mobile apps, and digital platforms. The study explores how digitalization increases financial inclusion, makes insurance services more accessible, and enables the personalization of insurance products. It identifies key benefits of digital transformation in the insurance market, such as enhanced operational efficiency, lower administrative costs, faster data processing, and improved customer experiences. However, it also outlines major challenges and risks associated with digitalization, including cybersecurity threats, personal data protection concerns, technological dependencies, and the necessity for robust regulatory frameworks. The article argues for a comprehensive strategy for the digital transformation of insurance companies to maintain their competitiveness and ensure sustainable growth in the digital economy.</jats:p>