Page 19 - Insurance Times January 2023

Cover Story

Insurtech in

India

Tarun Singh
A Seasoned Risk Management
and Insurance Professional

Insurtech refers to the use of technology to create efficiencies within the insurance Eco space.
The Indian insurance industry is a regulated industry as other countries with a market size of
around USD $ 280 billion.

he last few years have seen some prominent Globally insurers have been early adopters to technology but
T changes in the insurance space. The adoption of through the years innovation was not given any importance
technology has created a whole new tech enabled
hence insurers were left with facing a dynamic environment
business models to disrupt the insurance ecosystem with legacy systems that challenged operational efficiencies.
in India. From the early web aggregators to more than 140 Meeting business challenges involved high investments to
insurtech start-ups the insurtech landscape in India is has upgrade existing technology which posed a dilemma that
seen the emergence of several players across the value resulted in the continuation of obsolete technology and need
chain. From the focus on sales and distribution we are seeing to innovate. Critical events like COVID -19 forced the
a shift in other parts of the value chain as well. Underwriting, insurance industry to fasten the pace adopting a digital path
claims management, employee benefits, business analytics or face existential threat. The slew of activity and
and insurance administrative platforms are seeing an emergence of new tech players within the insurance
increase in number of players. Today the use of telematics, industry is questioning the necessity for insurers to have any
Internet of Things, Artificial Intelligence is common usage physical infrastructure other than IT systems, an IP-enabled
in the industry. computing device to develop , communicate, distribute
products and claims service to customers.
Over the last few years insurance industry has been forcefully
awakened from their slumber due to changes in customer Insurtech refers to the use of technology to create
requirements, the obstacles created due to delay in policy efficiencies within the insurance Eco space. The Indian
servicing, legacy products & process. The industry is slowly insurance industry is a regulated industry as other countries
moving from a push to a pull and therefore industry will with a market size of around USD $ 280 billion. Our
withen straght through processing, on demand products and penetration is around 4.2% (life insurance is 3.2 % and
better customer engagement. While some of them still General Insurance is 1%) with an overall density is around
prefer to sleep, the majority have realized the need to US$ 78 with 58 insurers. These figures look small compared
innovate to build / maintain competitive advantage. to global averages, but the trend of growth is positive since

16 January 2023 The Insurance Times