India is the Second Largest InsurTech Market in APAC: S&P Report
Between 2015 and 2020, the worldwide insurtech market grew at a rapid pace. According to S&P Global Market Intelligence data, India is currently the second largest insurance-technology market in Asia-Pacific, accounting for 35% of the $3.66 billion in insurtech-focused venture capital invested in the area.
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According to the S&P Global Market Intelligence report, "China and India are collectively home to nearly half of private insurtech companies in the APAC region and attracted about 78 percent of the investments.”
As per the statistics, there are at least 335 private insurtech firms operating in Asia-Pacific, with 122 of them declaring a total of $3.66 billion in capital raised through private placement arrangements.
"China and India are collectively home to nearly half of private insurtech companies in the APAC region and attracted about 78 per cent of the investments," S&P Global Market Intelligence said.
Because of their big and rapidly rising insurance markets, the two markets will continue to attract the lion's share of investor interest, according to the report.
The Indian insurance industry relied on one-size-fits-all insurance products in the market, but the dynamics of the insurance market are changing.
Innovative products such as usage-based insurance, microinsurance, and on-demand insurance are proliferating in the Indian market.
India which has one of the largest smartphone user base could use existing mobile and digital penetration to expand the reach of insurance products (life, health, and pension schemes) into largely unavailable parts of the country, such as youth and low-income customers.
"India is the second largest insurance technology market in Asia-Pacific. India has at least 66 insurtech companies and accounted for 35% of the $3.66 billion in insurtech-focused venture capital invested in the APAC region," said Sampath Sharma Nariyanuri, a fintech analyst with S&P Global Market Intelligence. "Insurance technology investors are attracted to India since it is one of the fastest-growing insurance markets in the world," he added.
Insurance premiums in India totaled $107 billion for the 12 months ended March 31, 2020, up 10% from FY 2015 to FY 2020, according to him.
Due to their roles as investors, collaborators, and competitors, large technology companies such as Tencent Holdings, Ant Group Co. Ltd, Amazon.com Inc., and Grab Holdings Inc. would have an impact on the insurtech ecosystem in the region, according to the report.
Collaborations with popular lifestyle and e-commerce platforms could be critical for scaling for technology businesses seeking customers online.
"While big techs are vying to become digital intermediaries in the insurance space, established carriers are building proprietary digital channels.
Startups that assist both incumbents and big techs in making this transition will likely emerge as winners," the report said.
Insurance companies are utilizing advanced technological solutions to improve client communications and efficiently implement automated processes.
Significant growth in the banking, financial services, and insurance industry all over the world is one of the key factors driving the insurtech market.
Furthermore, the rapid digitization of insurance services is propelling market growth. Insurance companies are utilising advanced technological solutions to improve client communications and efficiently implement automated processes.
Digit Insurance, Acko General Insurance, Artivatic.ai, Coverfox Insurance, Toffee Insurance, Wishleaf, Finsall Resources, Ria Insurance, GYPSEE.AI are the few insurance tech companies in India.