India Insurtech Landscape and Trends
In recent times, rapid growth in Insurtech funding has continued across the globe reaching almost 7X in the last 5 years, with a continued momentum even during the COVID-19 pandemic that slowed down most sectors. In the year 2021 alone, we’ve witnessed the emergence of 22 Insurtech unicorns at a global level. India too, has showcased a very strong momentum, with Insurtech funding nearly doubling in the last 2 years driven majorly by General Insurance and B2C focused Insurtechs. With this context, BCG in partnership with India Insurtech Association (IIA) has released the second edition of the Insurtech report, “India Insurtech Landscape and Trends” which identifies the current trends in the industry, based on perspectives gathered from multiple stakeholders including insurers, Insurtechs and key distribution players.
The report highlights how the funding has doubled in the last two years driven majorly by General Insurance and B2C focused Insurtechs indicating sustained investor interest. The 5 critical themes shaping the industry are: Emergence of New customers segments, Importance of higher distribution penetration and reach, Criticality of enhanced customer experience, Data and Analytics as core capabilities and further emphasis on health insurance through the National Health Stack. The report also highlights the key industry players who have driven innovation across the 5 themes mentioned above and the impact they have generated. The report also lays down key implications for the industry stakeholders going forward. It suggests that there is room for multiple collaborations, with scope for insurers to also scale up investments in Insurtechs and implement seamless processes to collaborate. There is also significant scope for further innovation in key problems such as deepening penetration in tier 2+ locations and across product lines, along with a higher focus on health insurance. Lastly, Insurers and Insurtechs can work with regulatory bodies and government agencies to continue to strengthen some of these platforms for further experiments.