As the Covid-19 pandemic developed, insurers were forced to change their way of doing business overnight and to speed up the digitization process. With the first lockdown, people depended on online services and thus accepted the digital world as the new "normal". Digital transformation brings with it a series of changes for society as a whole, so the financial system is no exception. For the insurance sector, such changes create new opportunities, but also new unpredictable dangers. The benefits are visible in the changes in the insurance value chain and can be manifested as an increase in speed and efficiency, better customer support, billing automation or early detection of fraud, suspicious behavior and transactions. Data-driven technology is rapidly transforming the insurance value chain. Data has always been key to the business of insurers, and developed algorithms more efficiently collect and process a large amount of data and thereby contribute to the improvement of insurance products. On the other hand, digitization and implementation of new technology in the business models of insurers represents a regulatory challenge for supervisory institutions. The goal is to create an environment that encourages innovation and does not threaten consumer integrity in the insurance market. Although digital transformation is one of the main strategic goals of insurers, the sector as a whole lags behind in this process compared to other financial sectors due to the lack of a proper regulatory framework. Also, the issue of regulation is important for the problem of rapidly growing digital risks. Early detection of the dangers hidden behind digital risks is important for creating digital consumer confidence.