Armanda Tola – Epoka University, Faculty of Economy and Administrative Sciences, Rinas, 1000 Tirana, Albania

Keywords:
InsurTech;
Insurance market;
Risks;
Western Balkan states

DOI: https://doi.org/10.31410/EMAN.2024.179

Abstract: The digital transformation has increased its relevance for insurance companies in recent years, as one of the main drivers of insurance market deΒ­velopment. As with any revolution, it comes with opportunities and challengΒ­es, especially for the information technology departments to increase the efΒ­fectiveness of business processes. This paper aims to provide a comprehenΒ­sive overview of digital technologies and their capacity implemented in the inΒ­surance industry in some of the Western Balkan states Albania, Kosovo*, and North Macedonia. The data was collected from a survey initiated by Deloitte in Poland called β€œInsurtech 2022 Survey” which was distributed to some seΒ­lected Central European states, to identify industry trends and examine the needs of insurers and capabilities of Insurtech companies. This study uses reΒ­sults from primary data gathered from this survey which was delivered to all non-life insurance companies in Albania, Kosovo*, and North Macedonia and was answered by more than 70% of them. The aim was to examine the inΒ­dustry trends and determine both the needs of insurers and the capabilities of the insurance industry. The paper discusses Insurtech tools implemented in these business processes, evaluates the effectiveness of their use, and identiΒ­fies the associated risks. The conclusion revealed that North Macedonia has spent and plans to spend more than the other is the most significant study with Insurtech companies, in positive line with the volumes of gross annual premiums. The paper also discusses Insurtech tools implemented in non-life insurance companies, assesses the effectiveness of their use, and identifies the associated risks. The results illustrate three major tasks the industry is facing: the risk of unauthorized access or cybersecurity is the most significant risk acΒ­cording to the respondents, followed by the challenges of improving the cusΒ­tomer experience, and business processes, offering new products, and preparΒ­ing for competition with other industries. Moreover, key areas of adaptation according to this study are identified such as the effect of information asymΒ­metry and risk assessment, and the implications of new technologies. The reΒ­sults emphasize the importance of a holistic digital strategy to be implementΒ­ed in the future in all these states.

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8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, CONFERENCE PROCEEDINGS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-83-7, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.2024

Creative Commons NonΒ Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.Β 

Suggested citation

Tola, A. (2024). Digitalization of Insurance Sector: Issues and Challenges in Western Balkan States. In C. A. Nastase, A. Monda, & R. Dias (Eds.), International Scientific Conference – EMAN 2024: Vol 8. Conference Proceedings (pp. 179-186). Association of Economists and Managers of the Balkans. https://doi.org/10.31410/EMAN.2024.179

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