The InsurTech Report analyses the current landscape of the Indian and global insurance industry
BLinC Invest released its InsurTech Report 2021 that focuses on global insurtech followed by Indian insurtech. The cornerstone of the report lies in its analysis of key emerging trends and the fund’s view on what it takes to be successful in InsurTech across different parts of the value chain.
The Indian insurance industry has a market size of $106 billion and life insurance accounts for 75 per cent of that after private players entered the industry in 1999 and contributed to its exponential growth.
The report also focuses on the impact of IRDAI’s strict ULIP norms on the Indian insurance industry after 2009, which triggered people to opt for term plans as compared to other forms of investment plans. This also pushed insurance providers to diversify the product portfolio of the general insurance segment.
“Our InsurTech Report highlights the significant gaps in the Indian insurance market and discovers a huge market opportunity in the non-insured and the under-insured segments. Technology will be the key enabler and we will be looking at investing in companies that understand that penetration across all segments is key to scale. Data and product innovation are critical to attracting the right customers,” commented Amit Ratanpal, Founder & Managing Director, BLinC Invest.
The report included details about the key emerging trends starting with the power shift from underwriting to distribution and data and also how industry players are exploring various D2C digital channels while leveraging the online footprints of their customers across various functions like pricing, claim prediction.
The industry is introducing solutions for AI-based underwriting, virtual claim, among others. It is also supported by IRDAI’s Regulatory Sandbox which is stimulating innovation in the sector.
Globally, the industry has been attracting a lot of interest from the investor community. Their funding has grown at a CAGR of 40 per cent over the last 3 years. Indian insurtechs have raised over $1 billion in the last 5 years and the Indian market has already produced two unicorns in the InsurTech space (PolicyBazaar and GoDigit).