Although globally there has been positive moment for insurance technology platofrms, Insurtech funding has continued its downwards trend in certain regions. But APAC has been fairly resilient, according to a BCG report.
As India aims for Viksit Bharat by 2047, a stable and resilient financial sector is vital, with the insurance industry needing to maintain its steady growth trajectory.
According to the report, Insurtech firms are now positioned at the forefront of this ongoing evolution, paving the way forward in expanding access, creating more awareness and improving affordability for all participants.
BCG, in collaboration with the India Insurtech Association (IIA), has released the latest edition of the India Insurtech report, “India Insurtech Landscape and Trends: Pathways to Inclusive Insurance – A Vision for 2047” which covers key industry trends and highlights various structural themes for the industry’s growth.
The research report emphasizes a number of important themes.
The Indian Insurtech ecosystem has made considerable progress with 150+ Insurtechs, 10 Unicorns and Soonicorns and 45+ Minicorns, with a 12x increase in revenue during the last 5 years in order to reach $750 million and a total valuation of $13.6 billion.
As India moves towards a Viksit Bharat, there is considerable opportunity for the insurance sector to drive insurance for all.
But penetration remains a key challenge, particularly in health insurance with more than 45% spends being “out of pocket.”
As per the report, there lies “substantial opportunity” for insurtechs to boost health insurance penetration across three pathways:
- Driving higher accessibility through new channels and improving efficiencies in existing channels.
- Driving higher awareness and trust through focus on overall health, wellness and a seamless experience.
- Driving higher affordability by leveraging data and introducing innovative products.
The report also highlights key focus areas for Insurtechs which include building “profitable operating models and fostering stronger collaboration within the ecosystem.” In conclusion, the report emphasizes that all stakeholders can contribute significantly “towards achieving this important national goal.”
