As India embarks on a mission of ‘insurance for all’, it is critical that every Indian has proper insurance coverage and for these programmes to be effective it requires widespread involvement and coordination from all stakeholders, including insurers, regulators, and customers. As more money flows into the insurance industry in the form of premiums in various insurance categories such as life, health, and auto, it will trickle downstream into important drivers of economic growth, physical infrastructure, healthcare facilities, and hospitals, among other things. Over the previous two decades, India's insurance market has grown by double digits, attributable to large private bank-backed insurers and considerable advances in distribution and operational skills. Despite low levels of insurance penetration and density, India is one of the top 15 insurance markets in the world.
This report has identified and addressed six important areas that would propel 'insurance for all,' namely the customer – the 'key' stakeholder, building integrated product solutions, distribution, data and analytics, technology and digital, cyber security, and insurance M&A. These factors together affect all elements of insurance and are intricately intertwined. Newer growing categories, such as Gen-Z and tier-2/3 markets, have an insatiable desire for personalization and convenience in insurance transactions, and if catered to properly, these segments have immense potential to boost insurance penetration and development. New technologies such as the internet of things, blockchain, metaverse, natural language processing (NLP), and artificial intelligence (AI/ML) are constantly growing and pushing innovation in the insurance industry. Adopting these technologies has aided insurers in automating routine operational activities, resulting in increased efficiency, increased company growth, and decreased risks and fraud.
Some of the key highlights of the report:
Insurance market in India stands at INR9.1 trillionwith life insurance at about INR6.9 trillion or 76% of the overall industry, and non-life insurance at INR2.2 trillion
Future growth will be driven by personalization and transformation. As the focus moves from generalisation to personalisation, the need to re-think and re-imagine the ways of doing business has never been so vital before
Personalized insurance through data-backed customer-centric approach & strategies, affordable and accessible insurance along with effective last mile delivery are few key areas for insurers to focus upon
Digital commerce is an emerging model, giving access to untapped markets by targeting digitally savvy customers preferring ‘Do it yourself’ (DIY) methods. Over the next few years, digital commerce in insurance is expected to grow at a double-digit CAGR, as insurers explore new business segments and deepen existing customer relationships
InsurTechs are disrupting the ways in which we see Insurance today. A collaboration that brings together insurers and appropriate InsurTech firms will help forge new customer-centric ecosystem models, bringing their key strengths under one umbrella, paving the way for future growth of the sector
As technological advancements drive transformation, insurers and other stakeholders can only create long term sustainable value by combining technology and business strategies