The Insurance sector in India is expected to grow to US$ 150B by 2023. One of the factors boosting this growth is the increasing customer reach and growing customer sophistication on service levels which is creating a new wave of InsurTech companies changing how Insurance is sold and serviced. The internet-first Insurance platforms are receiving positive customer feedback because of the quick service they provide, coupled with the convenience to access Insurances on mobile, as compared to interaction with the agents.
The Insurance sector in India is now witnessing a rise in the number of players innovating with technology through differentiated offerings and business models. New distribution platforms and aggregators touching multiple products in Insurance have emerged. Incumbent insurers are also not behind and are making rapid strides in adopting technology in customer acquisition, policy issuance, claim submission and processing and other areas of customer support.
How is technology transforming the Insurance industry in India?
Initially, InsurTech started with online platforms for discovery. Now, most digital population goes online to discover, compare and purchase insurance products. This trend is more pronounced in relatively simpler products like Motor Insurance, but even relatively complex ones like Health Insurance also have a strong digital influence making it more convenient for the customers.
The Insurance sector is undergoing a speedy transformation with digital and Data Analytics advancements. As the population in the country become more digitally savvy, multiple players are preparing to ride the emerging opportunity. We believe that in the next five years, there would be significant uptake in full-stack digital Insurance models, as insurers utilize Big Data to its complete capacity and leverage the internet to distribute and service cheaply.