Page 26 - Insurance Times February 2024

Furthermore, the increasing demand for insurance cover- The development of innovative insurance products tailored
age in the Asia-Pacific region presents a significant growth to the specific needs of the Asia-Pacific market further sup-
opportunity for reinsurers. As economies in the region con- ports the positive outlook for reinsurers. By designing poli-
tinue to expand, there is a parallel rise in the value of as- cies that address the unique risks associated with the re-
sets, both personal and commercial. This trend is driving the gion, reinsurers can offer valuable solutions to businesses
demand for non-life insurance products, creating a substan- and individuals. This adaptability and responsiveness to lo-
tial market for reinsurers to tap into. cal conditions enhance their competitiveness and
sustainability in the market.
The diversification of risk is another key factor contributing
to the positive outlook for reinsurers. The Asia-Pacific region Conclusion:
is vast and diverse, with different countries facing varying
The positive outlook for reinsurers in the non-life insurance
types and degrees of natural hazards. Reinsurers can lever-
age this diversity by spreading their risk across a broad spec- market in the Asia-Pacific region, despite natural hazards,
trum of geographies and perils. This diversification strategy is grounded in several key factors. The industry's commit-
ment to advanced risk management practices, the use of
helps mitigate the impact of a single catastrophic event on
their overall portfolio. data analytics, supportive regulatory frameworks, growing
market demand, risk diversification, strong industry relation-
Fitch Ratings also highlights the importance of strong rela- ships, and innovative product development collectively con-
tionships between reinsurers and primary insurers in the re- tribute to this optimistic perspective.
gion. Effective communication and collaboration between
these entities are essential for managing risk efficiently. As reinsurers continue to navigate the challenges posed by
Reinsurers often work closely with primary insurers to develop natural disasters, their resilience and strategic approach
comprehensive risk management strategies and ensure a position them well for sustained growth and stability in the
coordinated response in the event of a natural disaster. dynamic Asia-Pacific insurance landscape.

With IRDAI opening doors, Insurtech Cos look to transform into

General Insurers
New generation insurtech startups Bengaluru-based Onsurity and Punebased Loop Health have applied for licences to
offer health insurance, three people in the know. This follows the Insurance Regulatory and Development Authority
of India (Irdai) opening the heavily regulated sector to new participants. The sector regulator has sought tech-first
firms to play a key role in helping the country achieve the goal of insuring every citizen by 2047.
Last October, IFC, Nexus Venture Partners, Quona invested $24 million in equity funding in Onsurity, primarily to fund
its aspirations to become a health insurance company, said one of the persons cited above. Onsurity was started in
2020 by qualified actuary Yogesh Agarwal and Kulin Shah, who has worked with Acko in the past. It offers a health
insurance management platform for Jupiter Money, CleverTap, Zepto, DBS Bank, and Pantaloons, among others.
Founded in 2018, Loop Health has raised around $40 million till date from Y Combinator, General Catalyst, Elevation
Capital, and Khosla Ventures, among others.

“Both these startups want to eventually build products in the group health space, a sector where they act as distributors
currently,” said a senior industry executive in the know. Both Onsurity and Loop Health help employers offer group health
policies to their employees and run a platform to offer employee wellness services too. Onsurity has further expanded
into other general insurance products like cyber insurance, and commercial general liability insurance. While Irdai opened
licence applications last year, not much has moved on the regulatory front. Many companies had applied for insurance
licences under multiple categories and only three players got the nod - Acko Life Insurance, Digit Life Insurance and
Credit Access Grameen. In January, Narayana Health got the health insurance licence from Irdai.
There are around 19 companies whose applications are still being evaluated by the regulator. Among the large play-
ers, Reliance-backed Jio Financial Services and Paytm General Insurance have applied. “In the startup world, there
are multiple issues around foreign shareholding, issues about ultimate beneficiaries in the venture funds that are
backing these startups, so it is taking a lot of time to get the licence,” said a founder of an insurtech startup and one
of the applicants for a general insurance licence.

24 February 2024 The Insurance Times