Topics In Demand
Notification
New

No notification found.

The Insurtech Revolution in India: Growing B2C Space
The Insurtech Revolution in India: Growing B2C Space

92

0

Insurtech, a convergence of insurance and technology, represents the application of technology-driven innovations to the insurance value chain. In India, it is transforming the way insurance is bought, sold, and managed. According to the ICICI Lombard - nasscom report, titled Digitalizing Insurance: Indian End-Consumer Perspective, equity investments in Indian insurtech companies over the last five years stand at ~$2.6 Bn. The funds flowing into these startups reflect a profound belief in the potential of technology to reshape the insurance landscape in the country.

A graph of a number of people

Description automatically generated with medium confidence

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

In terms of funding, B2C (Business-to-Consumer) insurtech models have taken center stage in India. These are companies that directly reach out to consumers to offer insurance services, thus creating a seismic shift in how insurance is perceived and accessed. One of the key drivers behind this change is the rise of insurtech aggregators. Insurtech aggregators are platforms that allow customers to compare various insurance policies and choose the one that best fits their needs. These platforms have become immensely popular in India, since they offer consumers a user-friendly and transparent way to buy insurance. They are streamlining the traditionally complex process of policy selection by providing an easy-to-understand comparison of various insurance products.

A graph of a number of different models

Description automatically generated with medium confidence

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

The tilt towards B2C models is a game-changer in the Indian insurance industry for several reasons. Firstly, it brings transparency. Traditionally, insurance has been a complex realm with intricate jargon, and consumers have often found it challenging to navigate this space. B2C insurtech startups, with their user-friendly interfaces and clear policy comparisons, have changed this, making it simpler for people to understand and choose insurance that best suits their needs.

Secondly, these B2C players have brought about increased competition among insurance providers. With consumers now equipped to easily compare policies, insurance companies are striving to offer competitive products, more extensive coverage, and attractive pricing. This competitive atmosphere benefits consumers with better choices and often more affordable options.

The trends suggest that the insurtech market in India is not showing any signs of slowdown. The equity investments, particularly in B2C insurtech aggregators, indicate that investors are increasingly confident about the sustainability and profitability of insurtech startups. Moreover, the ongoing digital transformation in India and the government's initiatives promoting digitization and financial inclusion are expected to further fuel the growth of insurtech. The overall trajectory of insurtech in India is closely aligned with the digital evolution happening in the country. This journey involves creating a digitized insurance ecosystem, where customers have easier access to policies, and insurers can harness the power of data to tailor offerings and make informed decisions.


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.