Page 47 - Insurance Times December 2022

Insurtech landscape gradually

maturing in India

The Indian InsurTech market has grown Most funding in case of Indian Insurtechs has hitherto been
T considerably over the last few years, especially for sales & distribution players, however product
development is starting to gain traction.
with a steep 2x funding growth in the last two
years.
A couple of years back, the insurtech was an 'underdog' in
Funding to Indian insurtechs has grown at a Compound the sector, but it is coming up with a bang from support of
annual growth rate (CAGR) of 34% from FY17-20, taking off the legacy players as well as the interests of new players.
in 2021, stated a recent report by PGA Labs.
B2C business models with higher
In 2021, Indian insurtech companies raised a total of US$800
revenue
million in equity funding. This is more than 2019 (US$380
million) and 2020 (US$290 million) funding sums combined. When it comes to revenue generation, the PGA Labs report
Tracking the Insurtech ecosystem landscape, the report also said that B2C business models are valued higher by investors
highlighted that the global insurtechs also witnessed a CAGR due to higher operating leverage and perception of higher
of 37% in fundraise during that time period with 2021 proximity to customers.
proving to be a watershed year.
During the past few years, the revenue of established B2C
Legacy insurers have started paying much more attention marketplaces has exceeded the agents-based marketplaces
to newcomers and they've become a big funder. Somehow, revenue.
they have recognised that teaming up with technology firms
can be a game-changer. Leading InsurTechs in terms of growth

and funding
Globally, 20+ Insurtech unicorns have emerged in the past
PolicyBazaar has the highest funding followed by GoDigit
three years. Root, Wefox, Hippo, Next insurance, Lemonade,
and Acko during FY17-21. The year 2021 saw the maximum
Waterdrop and Unqork are among the global unicorns.
capital inflow, with Acko and Digit raising $225 Mn and $200
Mn, respectively, making it to the top funding deals of the
The list also comprises Indian unicorns such as Acko,
year.
PolicyBazaar (publicly listed) and Digit Insurance (to IPO in
2023).There are currently over 142 Insurtech startups
In case of growth rate, GoDigit exhibited the highest CAGR
operating in the country, as per Tracxn.
followed by Navi and Acko, the report added.
While InsurTech fundraising has been fast paced across Asia
It further highlighted that Turtlemint has the largest funding
in recent years, innovators in China and India appear to be
among the B2B2C marketplace during FY17-21, while
moving beyond a supporting role and confront the region's
InsuranceDekho has the highest growth rate, followed by
industry incumbents, said a report by S&P Global Market
Turtlemint.
Intelligence.
The Insurance Times December 2022 41