Digital India mission and standardization of India’s tech stack approach, inspired by UPI’s success, can further aid rapid growth to the insurance market over the next 5-7 years, said a report prepared by ICICI Lombard General Insurance in collaboration with nasscom
Indian InsurTech startups have successfully secured a collective funding of $2.6 billion since 2018, with approximately 90% of these investments fueling end-to-end InsurTech players, said a report “Digitalizing Insurance: India End-Consumer Perspective,” prepared by ICICI Lombard General Insurance in collaboration with nasscom.
This substantial funding injection has significantly enhanced awareness of various non-life insurance products in India.
As per the report, 6 out of 7 Unicorns in India’s InsurTech domain are dedicated to the B2C sector, addressing the critical issue of penetration.
Digital India mission and standardization of India’s tech stack approach, inspired by UPI’s success, can further aid rapid growth to the insurance market over the next 5-7 years.
India was the fastest-growing insurance market in 2022, expectedly growing by 9% CAGR as it became the 9th largest life, and 14th largest non-life insurance market.
India’s digital insurance journey
The report states that the growing digital-usage, data privacy, access to human guidance, and reliable online services are top-of-mind to consumers than the benefits of new-age technology solutions.
Going forward, consumer preferences with digital insurance will be centred around
simple-to-understand, transparent, trustworthy, and personalized services.
Additionally, 24*7 access to the services, user-friendly web interface, mobile accessibility and competitive premium rates will define the future course for the insurers.
Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at nasscom, said, “The
insurance industry has traditionally relied on face-to-face sales conversations, but with the advent of digitalization, it has transitioned into a hybrid model approach. Cutting-edge technologies such as machine learning, artificial intelligence, automation, and data analytics have played a pivotal role in the digital transformation of insurance operations.”
Girish Nayak, Chief – Technology and Health UW & Claims at ICICI Lombard, said, “In the
contemporary insurance landscape, the integration of cutting-edge technologies such as AI, ML,data analytics and digital is profoundly reshaping industry dynamics. Insurers have transcended their traditional roles as mere policy providers and claim payers; they’ve evolved into architects of data-driven customer journeys and builders of risk management strategies. These transformative technologies empower insurers to offer policies that are finely tailored to individual needs, expedite claims processing with unprecedented efficiency, and gain invaluable insights into customer behaviour.
India as an overall insurance market has grown at nearly 8.4% p.a. since 2018, compared to the global 2.4% during the same time. Non-life insurance have grown a lot faster, clocking between 15% – 20% growth, and surpassing that of life insurance in FY2022.
The rise of the sector’s penetration has been in sync with the growing share of its private insurance players significantly.
Technology investments in the sector have also increased significantly, driving access and affordable adoption for the consumers.
Launched at the sidelines of Future Forge 2023, the report highlights the tech integration in the insurance ecosystem – from the creation of tailored insurance products to the ways customers discover, purchase, and manage their policies – and what trends and shifts that are shaping the future of insurance in India.