Internet insurance in Ukraine: problems and prospects

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Visnyk LNAU: Economics of AIC 2019 №26: 92-98

Internet insurance in Ukraine: problems and prospects

Matskiv H. PhD
Lviv National Agrarian University

https://doi.org/10.31734/economics2019.26.092

Annotation

The article considers problems and prospects of insurance development in the Internet. In the research, particular attention is paid to the theoretical aspects of the essence of "Internet insurance". The work describes the main stages of the insuraning through the Internet and the key requirements that apply to the insurer and the insured while completing the insurance contract. It is determined that for the insurance company, key advantages in the organization of virtual business include: lower costs of setting of the company's website; lower transaction costs for customer service operations; expansion of geographical diversification of the company insurance products; an opportunity to increase the sale of insurance products at the expense of open access for customers from around the world; customer service on a qualitatively new level – seven days a week, 365 days a year.

The article supplies analysis of the insurance products market in the Internet. The study has found that insurance services, offered through the Internet in Ukraine, include property, personal insurance, and liability insurance. In Ukraine, the most widespread insurance products include insurance for traveling abroad, medical insurance, CASCO, compulsory insurance of civil liability of owners of land vehicles, insurance of property of individuals, etc. Among them, auto insurance is the easiest procedure for purchasing a policy.

The key attention is paid to the ways to improve the mechanism of Internet insurance providing. In the course of the study, the author improved specific directions for developing an e-commerce strategy for insurance companies, based on SWOT-analysis; developed an algorithm for strategic management of the insurance company and a conceptual model of interaction between the insurer and the insured within the framework of the process of strategic marketing planning at the market of Internet services. An important role in the processes of management of the insurer was performed by the complex of marketing communications, namely the elements of marketing mix: "product", "price", "sales", "promotion". It is determined that for an insurance company to enter the market of Internet services, it is necessary to define the subject of planning, outlining the main goals of sales and expected income, as well as defining its potential consumers (market segment), and forming its own image and reputation.

Key words

Internet insurance, insurer, insurer, on-line insurance, virtual economy, Internet services

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Article received 16.07.2019.

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