In the modern era of economic transformation, the digitalization of the insurance market has emerged as a critical strategy for improving efficiency, customer experience, and overall market competitiveness. This paper explores the implications of digitalization within the insurance sector, examining how technological advancements can streamline operations, enhance risk assessment, and foster innovation. By integrating digital solutions such as big data analytics, artificial intelligence, and blockchain, insurance providers can offer more personalized and accessible services. Furthermore, digitalization reduces operational costs and improves transparency, which are essential for building consumer trust. The study also identifies challenges in adopting digital technologies, including cybersecurity risks, regulatory compliance, and the need for workforce adaptation. Through a comprehensive review, this paper highlights the transformative potential of digitalization in fostering a resilient and modernized insurance market capable of meeting evolving consumer demands and contributing to broader economic modernization efforts.