The use of innovative technologies in insurance has developed the term InsurTech, which represents a combination of technology and insurance. InsurTech enables insurance companies to secure technological transformation. It helps them to find an easier and more modern way of doing business. Changes are visible in all insurance processes, from product development to damage payouts. In order to analyze the impact of innovative technologies, this thesis presents various ways, forms and results of their application. Also, the benefits of their application have been identified as well as the potential risks and challenges that arise with the development of InsurTech. The thesis shows the main characteristics of the European Union insurance market with a focus on the analysis of innovation and real-life examples of InsurTech that, using stateof-the-art technologies, are influencing the revolution of the European Union insurance market. The use of modern technologies has opened the way for innovation and the development of innovative startups that have new ideas and ways of doing business thanks to advanced technological infrastructure. InsurTech startups represent new entrants to the insurance market to which traditional insurers have to adapt, so the paper looks at the forms of their cooperation, their potential and the impact on the insurance sector. The use of modern technologies has opened the way for innovation and the development of innovative startups that have fresh ideas and new ways of doing business thanks to advanced technological infrastructure. InsurTech startups represent new entrants to the insurance market to which traditional insurers must adapt. In that way, the thesis looks at the forms of their cooperation and their impact on the insurance sector.