The market size of the Indian insurtech industry was $1.5 billion in 2020 and is predicted to grow at a CAGR of 44.6% from 2021 to 2025, reaching $10 billion by 2025, as per a report by Research and Markets. In 2023, there are several key trends to watch out for in the Indian insurtech market.
1) AI and Machine Learning: The first trend is the industry's increased use of AI and machine learning. Insurtech companies are already implementing AI and machine learning to improve underwriting, claims processing, fraud detection, and customer service. In the future, we may see AI-powered chatbots and virtual assistants that can handle complex customer inquiries and claims.
2) Usage-Based Insurance: The second trend is usage-based insurance (UBI) growth. This model charges customers based on their actual usage or behaviour, such as the number of miles driven or the frequency of gym visits. UBI is becoming increasingly popular, particularly for auto insurance, and could expand to other types of insurance in the future.
3) Blockchain Technology: The third trend is the adoption of blockchain technology. Blockchain technology provides a secure and decentralised way to store and transfer data, which could be useful for insurtech companies that need to manage sensitive customer information. More insurers may start using blockchain technology for areas such as claims processing, fraud detection, and digital identity verification.
4) On-Demand Insurance: The fourth trend is the expansion of on-demand insurance. This model allows customers to purchase insurance for specific items or events on a temporary basis, such as rental cars or travel insurance. On-demand insurance is gaining popularity, especially among younger consumers who prioritize flexibility and convenience.
5) Integration with other technologies: Finally, insurtech companies are increasingly integrating with other technologies such as smart home devices and wearables to collect more customer behaviour and risk data. This integration trend is likely to continue, with insurtech firms partnering with a wider range of technologies to provide more personalised and innovative insurance products and services.
Turtlefin & the Digital-first approach: Turtlefin has a digital-first approach to insurance, which means that customers can purchase and manage insurance policies online or through their mobile devices. This approach provides customers with greater convenience and flexibility and allows Turtlefin to operate with lower overhead costs.
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The Indian insurtech market presents significant opportunities for insurtech companies looking to disrupt the insurance sector, given its large population, growing middle class, and increasing digital adoption. The industry is set for continued growth and innovation as technology transforms the traditional insurance market, and players in the market continue to leverage digital insurance platforms, insurance SaaS, insurance APIs, bancassurance, embedded insurance, and other Insurance & Technology offerings.