INFLUENCE OF KEY FACTORS ON THE FORMATION OF INNOVATIVE STRATEGIES OF INSURANCE COMPANIES IN THE UKRAINIAN MARKET
Authors: POKALCHUK Oleksandr 
Published: January 2025

THE PURPOSE OF THE ARTICLE is concerned with studying the influence of key factors on the formation of innovative strategies of insurance companies in the Ukrainian market and determining their significance in the macro- and micro-environment.
RESEARCH METHODS. The article uses the following methods: case analysis, surveys, as well as analysis of internal documentation of insurance companies, tabular and graphical methods, methods of analysis and synthesis, literature research method, etc.
PRESENTING MAIN MATERIAL. In the current conditions of economic uncertainty and high competition in the market, Ukrainian insurance companies are forced to look for new approaches to improve their efficiency and competitiveness. Innovative strategies are becoming a key tool for adapting to rapid changes in the market and meeting customer needs. At the same time, a number of factors, both internal and external, influence the formation of such strategies. Important external factors include the digitalisation of the economy, regulatory changes, globalisation of financial markets and changes in consumer behaviour. Insurance companies face the need to adapt to new technologies, such as artificial intelligence, big data and blockchain, which can significantly increase the efficiency of business processes and improve customer service. In addition, Ukrainian insurance companies have to take into account the peculiarities of the domestic market, including macroeconomic instability, the legal framework and competition from international companies. Internal factors, such as corporate culture, management’s strategic vision, investment in innovation and human capital development, also play an important role in shaping insurance companies’ innovation strategies. Companies that fail to adapt to new conditions risk losing their market position.    Given the importance of innovation for the sustainable development of the insurance industry and the growing role of technology in the economy, a study of the key factors influencing the formation of innovation strategies of Ukrainian insurance companies is extremely relevant, which will help determine the optimal approaches to the development of insurance companies in the face of modern challenges.
CONCLUSIONS. The Ukrainian insurance market is undergoing active transformation due to growing competition, changes in regulatory policy, digitalisation of the economy, globalisation and martial law, which complicates all processes in the country’s economy. Innovative strategies are becoming the main tool for increasing competitiveness, improving customer experience and optimising processes in insurance companies. The study has shown that among the macroeconomic factors, the main ones that influence the formation of innovative strategies of insurance companies in the Ukrainian market are: economic factors, technological factors, socio-cultural factors, regulatory factors and the competitive environment. It is also found that since the modern insurance market is characterised by high competitiveness and rapid changes in the technological environment, the successful implementation of innovative strategies depends not only on macro-environmental factors, but also on specific internal factors (micro-environment): corporate culture, organisational structure, management processes, human capital. Thus, the study of the influence of key factors on the formation of innovative strategies of insurance companies in Ukraine is important in terms of adaptation to changes, which can contribute to the sustainable development of this industry in the face of modern challenges.
KEYWORDS: innovation strategies; insurance companies; insurance market; key factors; formation; martial law; digitalisation; Ukrainian market; adaptation; sustainable development.