InsurTech market as an innovative driver in the insurance industry

Abstract

The article examines the role of InsurTech as a systemic driver of digital transformation in the insurance industry, as well as the legal, technological, and infrastructural barriers to its development in Russia. The purpose of the study is to identify the key factors determining InsurTech’s place in the transformation of the insurance market and to substantiate ways to overcome the existing challenges within the Russian segment. Conclusions. The study establishes that InsurTech facilitates the transition to a client-centric ecosystem based on artificial intelligence, big data, the Internet of Things, blockchain, and telematics. The legal framework remains fragmented: the absence of a legal definition of a smart contract, imperfections in the norms governing digital insurance contracts, and insufficient personal data protection generate regulatory risks, including the risk of discrimination in algorithmic underwriting, thereby constraining the scaling of InsurTech solutions. It is noted that the introduction of mandatory liability insurance for harm caused by the use of artificial intelligence within an experimental legal regime signifies a shift towards concrete legal instruments for managing digital risks. The Russian market faces three groups of barriers: a digital infrastructure gap, low financial and digital literacy among the population, and a deficit of scalable data exchange platforms. International experience demonstrates the effectiveness of proactive regulation that harmonises digital insurance services. A strategic partnership among traditional insurers, technology startups, and the state is recognised as the key condition for overcoming the identified challenges and building a sustainable digital insurance ecosystem.