Topics In Demand
Notification
New

No notification found.

The Traditional Titans Embrace Tech: Legacy Insurers in the Indian Insurtech Landscape
The Traditional Titans Embrace Tech: Legacy Insurers in the Indian Insurtech Landscape

71

0

In the Indian insurance sector, the landscape has been undergoing a dramatic transformation. The narrative, once dominated by traditional insurance giants, is now evolving. These legacy insurance companies, which were often characterized by their conservative approach towards technology adoption, and were often reliant on age-old processes and conventional practices, now face a pivotal choice - adapt or risk becoming obsolete. Hence, legacy insurers are recognizing the potential of insurtech startups and technology providers in rejuvenating their operations. This has led to an evident shift in their approach where instead of resisting technology, these companies are embracing it.

 

 

Collaborations with New-Age Insurtech Startups

One of the primary approaches taken by traditional insurers is establishing partnerships with insurtech startups. The reasons behind these collaborations are multifold, including access to innovation, improved customer engagement, faster time-to-market, and more efficient underwriting among others.

Collaborations Between Traditional Insurers and Insurtech Startups

Legacy Insurer

Objective

SBI General Insurance's Innovation Sandbox

Invites startups to collaborate and experiment with SBI General Insurance's resources, data, and expertise to develop innovative insurance solutions

Reliance General Insurance's Risk Assessment Accelerator Program

Incubates Insurtech startups that focus on risk assessment and management

Aditya Birla Health Insurance's Insurtech Innovation Challenge

Focuses on incubating and accelerating Healthtech Insurtech startups

ICICI Lombard InsurTech Accelerator

Focuses on incubating and accelerating Insurtech startups across value chain

Munich Re's HSB IoT Innovation Center

Focuses on incubating and accelerating Insurtech startups that leverage IoT technology for insurance solutions

Source: ICICI Lombard - nasscom Digitalizing Insurance: Indian End-Consumer Perspective report

 

 

Investments in Insurtech Startups

Traditional insurers have also recognized the potential in these insurtech pioneers. As a result, they have started investing heavily in these startups. Such investments provide multiple advantages, such as exposure to cutting-edge technology, access to data and analytics, and better strategic growth.

Investments by Legacy Insurers in Insurtech Startups

Legacy Insurer(s)

Investment in Insurtech Startup

Reliance General Insurance and Tata AIA Life

PolicyBazaar

SBI General Insurance and HDFC Ergo

Digit

Aditya Birla Capital

Turtlemint

Bajaj Finserv

Plum

Source: ICICI Lombard - nasscom Digitalizing Insurance: Indian End-Consumer Perspective report

 

 

Co-Creation Partnerships

The collaborative journey doesn't end with investments and partnerships. Co-creation partnerships are now a part of the playbook for legacy insurers. In these arrangements, traditional insurance companies work alongside insurtech startups to develop new products, services, and solutions. Some of the key benefits from this arrangement include better products development, improved efficiency, better risk management, and better regulatory compliance.

Co-Creation Partnerships Between Legacy Insurers and Insurtech Startups

Objective

Co-Creation Project

Custom Product

  • Digit Insurance and Plum's Health Insurance
  • Aditya Birla Health Insurance and Healthi's Personalized Health Plans

Digital Distribution

  • Bajaj Allianz and Acko's Digital Distribution

Digital Claims Processing

  • HDFC Ergo and Digit Insurance's Claims Processing

Digital Customer Experience

  • Future Generali India Insurance and Digit Insurance's AI Chatbot

Source: ICICI Lombard - nasscom Digitalizing Insurance: Indian End-Consumer Perspective report

 

The shift towards technology and insurtech startups is not just a passing trend – it is a fundamental transformation that's expected to have both short-term and long-term impacts. In the short term, legacy insurers are already experiencing efficiency gains and improved customer engagement. However, the true potential of these collaborations and investments will become apparent in the long run. These developments promise a more efficient, customer-centric, and innovative future for the Indian insurance sector, which will benefit both insurers and policyholders alike.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


images
Dhiraj Sharma
Principal Analyst

© Copyright nasscom. All Rights Reserved.