Insurtech boom in India

Insurtech startups in India are booming, Mayur Shetty reports for The Economic Times, citing a study by ICICI Lombard and Nasscom.

Startups operating in this space have raised $2.6 billion in funding since 2018, the report says. Most of the funds have been used by companies to help raise awareness about insurance solutions.

India’s insuretech sector is focused on the B2C market, as witnessed by the growth of companies such as Plum, Acko, Digit, and PolicyBazaar. Legacy insurers have typically been slow on tech adoption, but with the insurtech boom, collaborations are becoming the norm, the report adds.

However, some challenges remain. Online sharing of personal and financial data, lack of human expert guidance in the process, and inadequate or incorrect policy information online are some roadblocks currently being faced by the industry.

Technology like artificial intelligence and machine learning have empowered insurance companies to tailor to individual needs and improve efficiency, says Girish Nayak, Chief – Technology and Health (Underwriting and Claim) at ICICI Lombard. The future will be all about building enduring relationships with customers, he adds.