DIGITALIZATION AND INFORMAL MUTUAL INSURANCE

Digitalization of the vital data in all aspects of society has been showing an accelerated trend since the beginning of 21st century, whereas its extended application to insurance industry has been considered only in the last couple of years. It began at the time when the Internet was introduced for selling insurance and covering losses on mutual basis by membership in informal risk pools.

In this paper, the author analyses the content, impact and goals attained by applying information technologies and digitalization, and subsequently analyses the ways of using the Internet for effecting mutual insurance. The legal framework for online mutual informal insurance is particularly discussed, together with the legal status of policyholders and obligations of the intermediaries in informal mutual insurance regarding the personal data protection.
As his sources, the author used the media, EU Directives and the regulations of the Republic of Serbia, as well as general business terms and conditions of two foreign companies acting as intermediaries in the provision of informal mutual insurance services.

Key words: digitalization, networks, Internet, informal mutual insurance, group, risk pool