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Liburkina L. M.

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Innovative Approaches to Risk Management in the Insurance Sector
Romanovska Y. A.

Romanovska, Yuliia A. (2025) “Innovative Approaches to Risk Management in the Insurance Sector.” Business Inform 11:744–744.
https://doi.org/10.32983/2222-4459-2025-11-744-744

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
Downloads/views: 0

UDC 368:005.334:330.341.1

Abstract:
The aim of the article is to study the current trends and innovative approaches to risk management in the insurance sector, as well as to assess their relevance in the context of the transformation of Ukraine’s financial market. The article provides an analysis of the transformations in the Ukrainian insurance market from 2021 to 2024. The research highlights a reduction in the number of insurers, growth in assets, premiums, and claims, alongside a decline in profitability, which has created a need to implement innovative risk management approaches. The study also explores the contemporary Ukrainian insurance market through the lens of risk management, which currently faces several systemic challenges, including market concentration risk, tariff risk, the threat of losses and financial instability, high dependence on reinsurance, as well as unpredictable risks associated with the macroeconomic and wartime environment. It has been determined that modern insurance companies are actively implementing technological solutions to enhance the accuracy of risk assessment and reduce operational costs, with one of the most promising directions being parametric insurance, based on the use of blockchain technologies, the Internet of Things, and Remote Sensing. The study emphasizes that the nearly ninefold growth of the blockchain market in the future insurance sector demonstrates the relevance of using this technology, as its implementation is critically necessary to improve the accuracy, transparency, and efficiency of risk management in the insurance industry. The article shows that the rapid growth of the blockchain solutions market in insurance (CAGR = 55–59%) is driven by their ability to reduce costs, minimize fraud, and accelerate claims settlement through smart contracts. It has been substantiated that parametric insurance and the integration of IoT with blockchain technologies ensure automatic payouts, more precise risk monitoring, and the creation of new insurance products. It is noted that the combination of decentralized ledgers, cryptography, and sensor systems forms the basis of innovative risk management, which enhances the resilience and flexibility of insurance companies.

Keywords: insurance sector, insurance market risks in Ukraine, innovations, artificial intelligence, blockchain, risk management.

Tabl.: 1. Bibl.: 14.

Romanovska Yuliia A. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of Finance, Accounting and Taxation, Dmytro Motornyi Tavria State Agrotechnological University (66 Universytetska Str., Zaporizhzhia, 69063, Ukraine)
Email: [email protected]

List of references in article

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