Debasish Panda, chairman, IRDAI
“Customer experience, cost of distribution and product innovation are the top three areas of disruption for insurance companies. Thereby, the sector transformation has resulted in the introduction of innovative and tech-first products which solve issues of accessibility, cost-efficiency while elevating customer experience, prompting an unprecedented scale of behavioral change” said Debasish Panda, chairman, IRDAI
The rapid economic expansion, ably supported by digital infrastructure and innovation will play a defining role to make the insurance market in India as one of the largest across the globe, said Debasish Panda, chairman, IRDAI.
“The market size is estimated to reach $ 200Bn by FY ’27 at the present growth rate. However we have aspirational plans, and we expect the market to grow by leaps and bounds, and the contribution of venture capital, private equity and family offices in nation building is a step in the right direction. With the support of the ecosystem, the burgeoning Indian insurance sector gains additional capital source as well as help foster new products and solutions to overcome present challenges of affordability and accessibility,” said Panda while addressing an exclusive forum, organised by the Indian Venture & Alternate Capital Association (IVCA), the apex industry body for alternative assets, to discuss – ‘Investing into India’s burgeoning Insurance Ecosystem’, in Bengaluru today.
He further commented, “Customer experience, cost of distribution and product innovation are the top three areas of disruption for insurance companies. Thereby, the sector transformation has resulted in the introduction of innovative and tech-first products which solve issues of accessibility, cost-efficiency while elevating customer experience, prompting an unprecedented scale of behavioral change.”
“With India today ranking 10th in the global life insurance market and ahead of China (at 2.4%) and UK (at 3%)#, we are suitably positioned to cater to the rising demand of younger and digital-first consumers emerging from smaller and newer geographies and across life and non-life” said Karthik Reddy, chairperson, IVCA & Co-founder and managing partner, Blume Ventures.
Insurance penetration in India experienced an increase in momentum in recent years moving to 4.2 per cent in FY21 from 3.76 per cent in FY20.
Multiple reasons are cited for this development, specifically, ease of doing business, deployment of digital solutions by insurers, change in the attitude of consumers and their realization of financial security, evolution of products, including new regulatory framework regarding product approval and distribution by IRDAI.
The forum saw many leading Private Equity, Venture Capital funds and Family Offices to highlight the opportunities in the insurance space in a fast-growing digital economy in India.
The event was powered by Sequoia Capital and Khaitan & Co. and saw participation from the following – Karthik Reddy (Chairperson, IVCA, Co-founder and Managing Partner, Blume Ventures), Rahul Garg (Partner, Premji Invest), Ganesh KC (President, Pratithi Investment), Divaspati Singh (Partner, Khaitan & Co.), Niren Patel (Partner, Khaitan & Co.), Shweta Rajpal Kohli (Chief Public Policy Officer, Sequoia Capital India & SE Asia), Ishaan Mittal (Managing Director, Sequoia Capital), Sandeep Kagzi (Principal, Warburg Pincus), Treasa Mathew (Director, Investments, Omidyar Network India), Sanjay Swamy (Managing Partner, Prime Ventures), Nithya Eswaran (Managing Director, Multiples Alternate Asset Management Pvt. Ltd.), Divya Sehgal (Partner, True North), and Rajat Tandon (President, IVCA).