Page 43 - Insurance Times November 2023

The Changing

Face of the Life

Insurance Sector

in India Principal Consultant, is a Product Manager
Neeraj Kaushik

for the Infosys® McCamish NGIN platform
initiative at Infosys McCamish Systems.

Abstract:
Abstract:
Abstract:
Abstract:
Abstract:
The life insurance sector in India has experienced significant growth in recent years, driven by
increasing awareness, rising income levels, and favorable demographic trends. Insurers have
embraced digitization and technology, enhancing customer experiences and distribution channels.
Regulatory reforms have fostered a more consumer-friendly environment, encouraging product
innovation and competition. However, challenges persist, such as low insurance penetration and
the need for skill development in insurance professionals. Looking ahead, the future of the life
insurance sector in India holds immense promise. Insurers are likely to leverage data analytics,
AI, and insurtech to personalize offerings and reach untapped markets. As India's economy grows,
the sector will continue to evolve, addressing evolving customer needs and building a secure
financial future for millions of individuals.

Introduction: This article explores the key drivers of change, the impact
of digitization, the rise of new products, and the growing
The life insurance sector in India has witnessed a significant
role of insurtech in reshaping the life insurance sector in
transformation over the past decade. Rapid technological
India.
advancements, changing consumer preferences, and
1. Technological Advancements Driving Change:
evolving regulatory frameworks have all contributed to the
Advancements in technology have revolutionized the
changing landscape of the industry.
way life insurance operates in India. The rise of artificial
intelligence (AI), big data analytics, and machine
While India officially opened its doors to life insurance under
learning has enabled insurers to personalize policies,
the banner, Oriental Life Insurance in 1818, it was in 1956
assess risks more accurately, and improve underwriting
that Life Insurance Corporation of India (LIC), the country's
processes. Additionally, the adoption of blockchain
first nationalized life insurance, came into being. LIC enjoyed
technology has enhanced transparency and security in
a monopoly until private insurance players started entering
policy administration and claims settlement.
the market in the late 90s. As a matter of fact, the entry of
these new players completely changed the face of life 2. Digitization and Its Impact: With the increasing
insurance in India. penetration of the internet and smartphones, digital
The Insurance Times November 2023 39