The insurance tech segment is expected to do well in India, especially due to the government's removal of FDI restrictions in the insurance services sector. Experts point out that such a move is crucial due to India's low insurance penetration rate.
International insurers are expected to bring in capital, innovative products and technologies, and streamlined processes that will benefit millions of Indians. Local companies will also be driven to enhance innovation and improve customer experiences, quality, and service standards. Industry forecasts predict that India's insurance premiums will exceed global growth rates in the coming years.
With the right momentum, India's insurance sector could soon be one of the fastest-growing G20 countries, presenting a future where the Indian insurance industry is faster, stronger, and more inclusive.
Interestingly, in collaboration with the Boston Consulting Group (BCG), the India Insurtech Association (IIA) report reveals a vibrant landscape of over 150 insurance tech (or "insurtech") firms that have attracted over $2.5 billion in funding, generating over $750 million in revenue.
With 10 unicorns, several "soonicorns", and more than 45 "minicorns", India's insurtech sector exemplifies remarkable resilience and innovation, achieving impressive growth in funding and development.
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Over the years, revenue has increased multifold, driven by the rapid expansion of larger insurtechs. A higher number of insurtechs in the demand generation and distribution legs of the value chain create opportunities to drive innovation in underwriting, claims efficiencies and servicing.
“The current focus for Indian insurtech companies should be to harness the power of digital services, craft innovative products for underserved segments, and strengthen regulatory frameworks for sustainable growth. These initiatives are essential in our diverse country to bridge gaps and expand financial security for all,” remarked Mohammed Anzy S, Guidewire India MD and VP of Engineering. Guidewire Software delivers software solutions for the property and casualty (P&C) insurance industry. The company offers a cloud-based platform that helps insurers streamline operations, enhance customer engagement, and drive innovation.
The current challenge in India is that the majority of the Indian population is not served by insurance, presenting a substantial business opportunity for insurance companies, especially in light of the Insurance Regulatory and Development Authority of India's (IRDAI) goal of achieving "Insurance for All by 2024."
Firms that swiftly adapt to challenges innovate for the future, and foster collaboration within the insurance ecosystem are expected to be most successful. Resilience means enduring challenges and leveraging disruption as a catalyst for growth and success.
Experts point out that through digitalization and innovative solutions, the Indian Insurance sector can become more inclusive, efficient, and customer-centric. Insurers must prioritize sustainability, inclusivity, and customer focus when developing new products to ensure environmentally friendly practices and expand their reach to underserved markets.
"Technology is a powerful enabler, especially in India, where software systems must be designed for human scale challenges. With vast, scattered data across multiple platforms, technology can unify and process this information to create transformative experiences. In the insurance sector, this means making coverage more accessible, affordable, and inclusive for millions. Companies focusing on simplicity, transparency, and personalized experiences will likely take the lead in the industry," pointed out Anzy.
Insurance tech experts observe that building resilience in India's insurance sector requires a careful mix of technology, collaboration, and innovation, leading to systems that can survive disruptions and thrive.
A shared vision can reshape the insurance landscape, with the sector aiming for a future where a strong safety net reaches a large population segment and encourages financial inclusion for all.