InsurTech landscape is quite nascent in India. This mainly comprises of Digital Platforms offering Complete Policy Buying & Management known as the Aggregators. The current InsurTech penetration is quite low, i.e., 2.76% in life insurance and 0.93% in non-life insurance compared to the global average of 6.5%. Lack of customer trust remains the key hurdle facing the InsurTech segment, and so far, industry players have found it as a hard nut to crack.
Digital Insurance Aggregators These are the aggregator platform that enables customers to compare and buy insurance products of both new-age online insurers and traditional insurance companies. There has been a significant uptick in the number of aggregators since 2013 when a regulation was passed on web aggregators.
Small Ticket Sachet Insurance Small-Ticket Insurance, popularly known as sachet insurance, is being adopted on a wide scale among the Indian population. These insurance schemes are priced at lesser than Rs. 20, making it affordable for the users to get covered under insurance worth lakhs of rupees. These bite-sized insurance policies are being offered by startups (e.g., Toffee Insurance), IRCTC, Travel Agent Redbus, insurance companies, and Pradhan Mantri Bima Yojana.
Preventive Insurance Tech Startups Armed with the capabilities of AI/ML, predictive analytics, and data captured by IoT driven connected devices, InsurTech players are exploring ways to make the most out of deep data insights and drive the transition from a reactive approach to proactive prevention. Preventive insurance is gaining traction across the entire insurance value chain from health insurance to equipment, transit and automotive insurance.
Underwriting & Risk Management Using advanced technologies like Big Data, AI insurance companies can leverage a data-driven, risk-scoring model, thereby enabling help them to make better risk coverage decisions across all lines of businesses such as life & health, retirement planning, commercial, and investment. E.g., i3 Systems, Health Vector.
Innovative and fast-growing infrastructure APIs solution provider InsurTechs are poised to create a space of insurance as a service companies in India. There are startups leveraging AI for functions like claim automation, fraud prevention, underwriting & risk management, and insurance chatbots. The focus on niche segments is
driving this trend.