Page 36 - Insurance Times January 2023

vernacular languages, level of insurance awareness,
In the domestic market, we have
and local insurance risks.
already seen distribution focused 3. Collaboration with Insurers - Insurers are increasingly

Insurtechs raising Series C and relying on insurtechs to increase their digital capabili-
Series D capital in the last couple of ties. The Insurers are forming "digital" teams and also
partnering with Insurtechs to drive digitization on the
years, such as TurtleMint, RenewBuy, front end and back end. Insurtechs should start with
and InsuranceDekho. strong use cases which enable them to build partner-
ships with Insurers. Once there is a strong partnership
with insurers, InsurTechs can continue to expand their
In India, we're also seeing a set of customer-facing offerings to adjacent areas.
InsurTechs coming up in claims, such as Claimfriendy and
Insurance Samadhan, which have developed tech platforms Q. Globally, 20+ Insurtech unicorns have emerged
for managing claims on behalf of customers.
in the past three years. What is the potential of
Indian companies to join the bandwagon?
Q. What is the expected market you envision for
A. In the next three years we expect another 5-6 Indian
Insurtechs in India?
Insurtech unicorns to emerge.
A. The insurtech sector in India is poised for a boom in the
In the domestic market, we have already seen distribution
next couple of years. According to a recent RedSeer report,
focused Insurtechs raising Series C and Series D capital in
the Indian Insurtech market stands at $2 Billion as of 2021,
the last couple of years, such as TurtleMint, RenewBuy, and
and is slated to grow to $13 Billion by FY2026.
InsuranceDekho.
Indian customers are now digital and are rapidly research-
Similarly, India is now producing excellent InsurTech com-
ing and purchasing more products online, including insur-
panies who are building Enterprise Tech, SaaS, and Analytics
ance, thanks to a high proliferation of smart-phones and
companies for the global insurance community. Some of
cheap internet. Hence, we expect that the role of Indian
these companies are global leaders in the use of data, data
InsurTechs will become even more prominent in the years
to come, as the insurance industry addresses the growing science, and AI/ML in insurance. These companies have the
needs of the new-age digital customers. potential to become some of the largest InsurTech compa-
nies in the world and we can expect at least a couple of
Any new entrant in the Indian Insurtech market has a lot
them to become unicorns in the next 3-4 years.
of exciting growth to look forward to in the coming years!
A few areas for new founders and early stage companies
Q. Would you like to highlight any other devel-
can be:
1. Look for under-penetrated risk pools - There are still opment in the segment?
large risk pools in India which are under-served, for ex- A. In 2023, our industry has access to unparalleled data -
ample Home Insurance, Property coverage for SMEs, the kind of sources, the volume, the real time availability
Cyber Insurance, Parametric Crop Insurance, etc. of data is a game-changer. Presently, a lot of the global
InsurTechs can build specialised technology platforms innovation in InsurTech is coming from the availability of
in these areas to differentiate themselves. data and its use in areas such as underwriting, risk man-
agement, and predicting losses. The ability to capture and
2. Enable digital distribution to all parts of India - India
analyse data from different sensors and sources in near real
is a large and diverse country. InsurTechs should build
time opens the door to more proactive risk management
platforms to focus on digital distribution across specific
and claim prevention models.
regions or communities in India - the focus on specific
customer segments should be built on deep understand- There is still significant room for new InsurTechs to build
ing of the their customer's income levels, access to companies around the explosion of data and its use in the
digital goods and services, local community practices, insurance industry.

32 January 2023 The Insurance Times