New Delhi, Apr 26 (PTI) Insurtechs in India are well-positioned to cater to the nuanced needs of customers and are at the cusp of exponential growth, said a report.
Funding for insurance technology (insurtech) firms in India has also more than doubled from USD 290 million in 2020 to USD 800 million in 2021.
There has been a steady rise in the number of insurtech unicorns at over 20 in 2021, as per the India Insurtech Landscape and Trends Report.
The India Insurtech Association, which commissioned the report, said regulators and government bodies have also been supporting innovation and transformation in the insurance industry.
“IRDAI has played an active role in supporting innovation in the industry. The recent regulatory sandbox is a crucial milestone in this regard and saw participation by more than 22 insurers who submitted more than 170 proposals,” it said.
Further impetus has been provided by the launch of the National Health Stack, it said, adding insurers and insurtechs can work with regulatory bodies and government agencies to continue to strengthen some of these platforms for further experiments.
Talking about opportunities for insurtech, the report said affordable healthcare for employees of small and medium enterprises (SMEs) remains an unaddressed segment.
There is an opportunity to provide them holistic health and wellness offerings and enable SMEs to improve employee retention, it noted.
Thrust for employer or group insurance for large number of emerging SMEs by customising offerings focussed at providing affordable solutions is another opportunity before them, it said.
Subhajit Mandal, co-founder of India Insurtech Association, said the sustained funding levels over the last couple of years have helped launch multiple insurtech startups, which is key for innovation.
Enablers such as India Stack, Insurance Information Bureau and the regulatory sandbox have provided a strong platform for innovation in insurance value chain, he added. PTI DP DP ABM ABM