BENGALURU: India is the fastest-growing insurance market and is expected to grow by an average of 9% per annum, said a report released on Tuesday.
The report released by ICICI Lombard, in partnership with Nasscom, says that India as an overall insurance market has grown at 8.4% per annum since 2018. The country is ranked 11th in the world when it comes to insurance gross written premiums or insurance volume.
Released on the sidelines of Nasscom's Future Forge 2023 event in Bengaluru, the report says the Digital India mission and standardisation of India’s tech stack approach, inspired by UPI’s success, can further aid rapid growth to the insurance market over the next five to seven years.
Health insurance has been a major growth driver in India, with the health insurance industry reporting 26.3% growth in FY22, making it the largest non-life insurance sub-segment with a market share of about 36%, followed by the motor segment at 32%.
Girish Nayak, Chief – Technology and Health UW & Claims at ICICI Lombard, told TNIE that AI and ML are playing a significant role in the insurance sector.
The company has been using AI for five years now. Nayak said the visual interactive voice response (Visual IVR) introduced in FY21 for motor claim registration and voice bot that was launched in the general insurance space providing real-time status updates on motor and health claims are receiving huge response from customers.
"In the contemporary insurance landscape, the integration of cutting-edge technologies such as AI, ML, data analytics and digital is profoundly reshaping industry dynamics. Insurers have transcended their traditional roles as mere policy providers and claim payers; they've evolved into architects of data-driven customer journeys and builders of risk management strategies," he added.
Nayak also said that the Ayushman Bharat Digital Mission will revolutionise the healthcare sector.
The report highlighted that Indian InsurTech start-ups have raised an aggregate of $2.6 billion since 2018 and that about 90% of this funding in InsurTech has gone into B2C/Aggregators or end-to-end InsurTech players.
Also, security and privacy of personal and financial data emerge as a differentiating factor in consumers’ decision to expand services or buy more.