Innovative Activities within Ukrainian Insurance Companies

Abstract

The purpose of this research is to identify the role of innovations in overcoming the problems arising out of activities within insurance companies. Against the background of fluctuating marketing environment and high level of business risks, the staff of insurance companies is in high demand of scientifically substantiated recommendations on the very innovations which could bring business processes to a more increased efficiency level. The research of innovative activities within insurance companies in this paper is done using the following logical sequence: the place of innovations in the deployment of 4 Industrial Revolutions and their role in the modern insurance business (within Ukraine and abroad) about its fundamental and subsidiary business processes is displayed; common problems of national insurance companies and selected risk factors varying in terms of customer market (B2B or B2C), experience and foreign capital participation are described; the most practical innovative solutions for mitigation of identified risks in activities within insurance companies are suggested. The research presents the results of the sample survey of 52 insurance companies. The survey focused on hypotheses relating to as follows: threats to the business environment of insurance companies; directions for employment of innovations to develop insurance companies’ business; differences in assessment of threats to business environment; differences in opportunities and directions of innovations. ІВМ SPSS 20 software was used for processing of the data obtained. The following research methods were used to analyze the data: frequency distribution of variables, cross-tabulation, and nonparametric tests of variables. The research confirms that from 51.5 to 77 % of Ukrainian insurance companies are faced with some difficulties in their performance. The risk factors being the most relevant for insurance companies are the low paying capacity of customers at the insurance market (1st place), high competition (2nd place), imperfect legislation (3rd place). The research identified the following significant problems associated with the company's internal environment: lacking a definite strategic business development plan (1st place), problems involving qualified staff (2nd place), and problems with the interaction of structural units (3rd place). The research empirically lends support to specific directions of putting into practice and nature of innovations necessary for countering specific threats in their activities. Research findings can be of some practical value for improved efficiency of business processes both for Ukrainian and foreign insurance companies operating under the conditions of ever-changing factors of the business environment. Keywords: insurance companies, innovations, business processes, В2С market, В2В market.