India has a sizeable Insurtech ecosystem, with 150+ active players, cumulative valuations crossing USD 15.8 billion, and revenues reaching USD 0.9 billion in 2024 - a 10x increase since 2019. The sector has 2 unicorns, 8 players between USD 100 million to USD 1 billion and 45+ players over USD 1 million. Global Insurtech funding slowed down to USD 4.1 billion in 2024, in-line with the wider Fintech correction. India also mirrored the global trends, signaling a shift in investor focus to backing businesses with clear paths to profitability and scale. Health Insurtechs in India accounted for 4 of the 5 largest deals and more than 70% of the funding, reflecting their role in driving access, efficiency, and innovation.
GenAI has emerged as the next major force shaping the insurance industry. The technology has evolved from AI to GenAI and now Agentic AI, with insurance ranking #2 globally in adoption, behind only technology. Use cases span the entire operating model – sales and distribution, underwriting, claims, renewals, and servicing. Large insurers deploying GenAI are already seeing significant impact, with 15–20% productivity increase for agents, 10–20% efficiency gains in underwriting, 20–30% lower service costs, and 3-7% increase in claims payout efficiency.
AI/GenAI has emerged as a catalyst for India’s Insurance industry, presenting a USD 4 billion annual profit expansion opportunity - a 60% increase on a USD 6 billion profit base, driven by USD 25 billion in additional revenue and USD 3 billion in cost savings. AI/GenAI is redefining how insurers sell, underwrite, service, and retain customers - creating a more intelligent, inclusive, and efficient ecosystem.
90%+ insurers globally have launched AI/GenAI pilots; however, only 7% have scaled to enterprise-wide adoption. Scaling AI/GenAI capabilities and driving value requires a focused, end-to-end approach:
- Prioritize 2-3 high value pools to transform, instead of a "thousand flowers bloom” approach
- Balance technology with talent: 30% value is derived from AI/GenAI technology, 70% is derived through organizational capabilities and transformation
- Re-imagine processes, people and policy end-to-end for measurable outcomes, vs building point solutions
- Invest in data quality and build intelligence layers to unlock the full potential of AI/GenAI
- Mix of traditional AI + Gen AI is critical to manage costs and derive value
- Roll-out minimum viable products in 100-day waves and leverage insurtech partnerships to mitigate implementation risks.