Digital Transformation and Innovation in the Insurance Sector: Processes, Technologies, and Challenges

The digital transformation of the insurance sector improves risk assessment, pricing, distribution, and claims management. Key technologies driving these changes include artificial intelligence (AI), machine learning (ML), big data analytics, and automation. These advancements primarily drive process innovation, aligning with Barras’s reverse innovation cycle rather than traditional product innovation. The authors show that key technologies such as telematics, the Internet ofThings, predictive analytics, and robotic process automation streamline operations and improve customer experience. However, challenges remain in ensuring AI transparency and interpretability. While digital transformation is still in its early stages, its continued development will shape the industry’s efficiency, competitiveness, and regulatory landscape. Keywords