This is a Guest Blog by Mr.Sanchit Malik, Co-Founder & CEO, Pazcare on the future of InsurTech Sector in 2022.
According to India Brand Equity Foundation, in February 2021, the Finance Ministry announced to infuse Rs. 3000 crore (US$ 413.13 million) into state owned general insurance companies to improve the overall financial health of companies.
India’s venture into the insurance sector has been on the rise rapidly.
The whole insurtech sector, because of its many benefits, has been increasing gradually in the year 2021.
In September 2021, new premiums of life insurers registered 22.2% growth, up from 2.9% in September 2020. Digital insurance has become very popular because of the ease it provides for people wanting to get insured. From the comfort of their homes, individuals can get themselves insured, selecting the best alternative for them, from the pool of options available.
The technology oriented market has managed to garner a wide audience because of its developing nature. With new additions to the same, 2022 seems promising. The insurance market could still face some major challenges in the upcoming year because of financial hurdles faced by both the individuals and the economy. The frequent changes in the economy of the country also poses a greater challenge to the insurance market. The pandemic has had an adverse impact on the same as the life-insurance sector took a hit because of the low mortality rate.
Insurtech has minimized the risk involved in taking insurance as everything is digitized for the world to see. The potential insurance takers can easily calculate the pros and cons of any and every policy that they require. They can add any additional policy or remove a service from their plan according to what they need.
The use of Artificial Intelligence has also paved the way for the insurance sector to glide smoothly through the networks. Often, humans trust technology more than others because they think others can take advantage of their vulnerable position. Insurance sector is nothing like what it was around 5-6 years ago, it has gradually turned into a huge market with various feasible options for everybody.
In the year 2022, we look forward to the insurtech industry to offer more customizable solutions for hybrid and remote workplaces as it’s become the new normal and a deal breaker for younger generations.
Everybody is now aware of what they need and quite skeptical about where they put their money into.
According to S&P Global Market Intelligence data, India is the second-largest insurance technology market in Asia-Pacific, accounting for 35% of the US$ 3.66 billion insurtech-focused venture investments made in the country. The future looks very promising for the Indian insurance sector, as more and more people are trusting the market and opting to get insured.
Not only individually, but getting insurance for one’s spouse, parents and children is also becoming important. With a few changes in the current framework of the insurance market, the external factors such as increasing unemployment and spread of diseases, the insurance takers are expected to increase in a couple of years.
As maintaining and taking care of oneself has been taught by the pandemic, the next step to safeguard one’s future is by getting insured!
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