By using modern technological innovations in its business, the insurance industry is responding to changes in the understanding of the insurance business, its products and services. Innovations in insurance are related to the term "Insurtech", which was created by a combination of words "insurance" and "technology", modeled on the term "Fintech" which means the use of technology in financial services. Areas where the use of technological solutions such as cloud computing, blockchain, artificial intelligence and telematics, drones, biometrics, the Internet of Things can contribute to progress are numerous. Prior to modern technological innovations in insurance, topics important for understanding their occurrence were developed. The advantages and risks of applying technology in the financial system are described, as well as the development of new products, changes in the structure of financial institutions, consumer preferences and requirements and the impact of technology on the financial system. Trends and new products in insurance, challenges and changes in the modern insurance industry and technology and processes in insurance are also explained.