Page 41 - Insurance Times February 2023

India's insurtech landscape is

gradually maturing

he Indian Insurtech segment-the business of The total insurance market in India is projected to grow
T providing technology for the insurance industry- from ?8 lakh crore in FY21 to Rs. 33 lakh crore by FY31 at a
is maturing as more categories of the industry are
CAGR of 14.9 per cent, aided by increasing penetration
starting to attract funding and leverage
technology, according to a report by PGA Labs. levels and government initiatives.
The total number of new insurance policies sold has
Globally, more than 20 insurtech unicorns have emerged in increased from about 19.8 crore in FY18 to about 26.4 crore
the past three years. Root, Wefox, Hippo, Next Insurance, in FY21.
Lemonade, Waterdrop, and Unqork are the global unicorns,
while Policybazaar, Digit Insurance, and Acko from India During FY21, about 67 per cent of the lives were covered
have entered this space. under government-sponsored health insurance schemes,
about 23 per cent of the lives were covered under group
In the Indian insurtech space, B2C business models and
business, and the remaining 10 per cent of the lives were
online-first insurers appear to be valued higher by investors
covered under individual policies issued by general and
due to higher operating leverage and the perception of
health insurers.
greater proximity to customers. More than 140 insurtech
start-ups are operating in India as per Tracxn.
"The threshold of Rs 5 lakh annual limit appears a harsh.
This may adversely affect the business for many insurance
The insurtech landscape in the country has seen the
providers," he said.
emergence of several players across the value chain.
Traditionally, Indian insurtechs have focused on sales and
Meanwhile, shares of insurance companies slumped up to
distribution. However, new insurtechs are emerging across
10% on Sitharaman's renewed thrust for the new tax
other parts of the value chain as well. There is growing
regime, where deductions are not allowed.
traction in underwriting, claims technology, business
analytics, and administration platforms as the insurtech
sector starts to mature. Join

Funding for global and Indian insurtechs has grown rapidly, Online Certificate Course on
and 2021 proved to be a watershed year for the insurtech
industry. Globally, funding to insurtechs has grown at a CAGR Digital Trends in Motor
of 37 per cent during FY17-FY21, while funding to Indian
insurtechs has grown at a CAGR of 34 per cent during the Insurance
period, with 2021 witnessing strong momentum.

The report pointed out that insurance companies in India For details please visit
would need to leverage technology within the organisation
and with customer interactions to unlock higher potential
www.smartonlinecourse.co.in
and efficiency.
The Insurance Times January 2023 37