Digitalization and application of technological solutions is becoming an integral part of the business strategy for all financial institutions. New, innovative and advanced technologies enable the realization of numerous advantages for institutions whose business processes are complex and under the influence of multiple internal and external factors that impose the need for continuous adaptation to the business environment. Insurance companies, financial institutions that until recently relied exclusively on traditional business methods and resisted modern digitalization trends, are now completely restructuring their business policies under the influence of financial technology and actively applying numerous technological solutions to create multiple added value for themselves and their policyholders. The introduction of business processes and provision of products and services in insurance based on innovative technological solutions with the aim of squeezing out unnecessary costs and increasing the profitability and competitiveness of business is united under the term InsurTech. In order to show the distinct importance of financial technology in the insurance industry and its intensive development, this thesis presents various methods, forms and effects of the InsurTech applications in the basic business processes of insurance companies. In addition, this thesis presents connection between digital innovations in the insurance industry and the legislative and regulatory framework, including its limiting factors that could slow down the application of financial technology in insurance. In order to understand the extent to which the domestic insurance market applies digital innovations in business and the characteristics of the Croatian insurance industry, the most influential InsurTech application examples by domestic insurers were researched. To achieve the aim of the thesis, the literature dealing with the field of financial technology in the insurance industry was used. In addition to the titles of books, scientific, professional papers and articles, as well as various publications of international organizations, materials from the numerous websites were used in order to collect the latest information and data related to the topic being covered.