Factors Affecting Digital Transformation of Insurance in the Republic of Serbia

Abstract

Implementation of IT innovations in insurance industry enhances actual business models and creates new ones. E-insurance refers to creating and providing insurance and connected financial services through digital solutions. In this paper the impact of IT usage and digitalization on insurance sector in the Republic of Serbia is analysed. The aim of the proposed analysis is to reveal the determinants of the adoption of innovative technological solutions in insurance in the Republic of Serbia. Relying on the TOE framework, three groups of factors influencing the adoption of IT in e-insurance are identified: technological, organizational and environmental. Panel data approach and logistic regression are used to examine the effects of proposed factors on e-insurance adoption. The obtained results indicate that organizational and environmental factors have statistically significant influence on the achieved level of e-insurance adoption, while only the market share of the insurance company positively influences the odds of e-insurance adoption. Therefore, it can be concluded that e-insurance in the Republic of Serbia is the matter of reputation and tendency of insurers to achieve short-term gains and a competitive advantage through innovation.

A Conceptual Framework of E-Takaful Participation Readiness (ETPR) among Individuals at Insurable Age in Malaysia

“…However, this critical area, such as technology for bringing innovation to takaful products, is not found in the present literature (Qadri, Ali, Jafar, Tahir, & Abbasi, 2022). Hence, Tech Takaful is a new area that needs to be explored in the digital era's future model of the takaful sector (Stanković et al, 2022). Nevertheless, previous studies have discussed e-insurance acceptance at two levels: organisational and individual (Scupola, 2009).…”

“…The significant contribution of this research is the development of a new model for e-takaful, as fewer studies have been found on this topic compared to e-insurance. Hence, Tech Takaful needs to be explored in the digital era's future model of the takaful sector (Stanković et al, 2022). In addition, this study is essential to raise public awareness and help the government accomplish its goal of hastening the recovery from the COVID-19 pandemic, reducing poverty, fostering stability and prosperity, and encouraging "green economic growth" in the nation.…”

“…Previous studies have mainly focused on e-insurance (Grazy & Parimalarani, 2019;Bagheri & Forushani, 2016;Hashim, 2022;Nyirenda & Nyirenda, 2023;Stanković et al, 2022;Nuralieva, 2021), but little research has been done on e-takaful participation readiness (Toukabri & Ettis, 2021). The relevance of online participation in takaful is essential to addressing the changing preferences of policyholders and the evolving landscape of the takaful industry.…”

“…Nevertheless, previous studies have discussed e-insurance acceptance at two levels: organisational and individual (Scupola, 2009). Hence, an organisation must first acquire and adopt technology before end-users of the company accept and use it (Stanković et al, 2022).…”

Big data analytics for insurance

“…Picture 1. The use of BDA in insurance product life cycle Many insurers start the transformation process by using BDA in certain activities of the products' lifecycle, for example, in marketing and sales (Stanković et al, 2022) insureds' everyday activities can be used to identify specific needs and to anticipate risks of certain insureds' segments. These information enables insurers to reveal the gaps between the current insurance coverage and insureds' requirements.…”