The Indian insurtech industry has raised $2.5 billion in funding to date, with promising
growth opportunities likely to attract even more investment in the coming years, according to
a report by Boston Consulting Group (BCG) and the India Insurtech Association (IIA).
India’s insurtech landscape comprises around 150 companies, including 10 unicorns or
soon-to-be-unicorns, and over 45 “minicorns.” Over the past five years, industry revenue has
surged 12-fold to reach $750 million, with the total ecosystem now valued at $13.6 billion,
the report stated.
Although global funding in insurtech has slowed, the Asia-Pacific region, including India,
has demonstrated resilience. While India follows the global trend of declining investments,
revenue growth in the sector has been fueled by the rapid scaling of larger insurtech players.
The report highlights that a significant portion over 80% of insurtech funding is directed
toward companies specializing in demand generation and distribution. However, there
remains untapped potential in areas like underwriting, claims processing, and customer
service.
“There is tremendous scope for insurtech firms to leverage data and technology to
revolutionize underwriting and claims management, which are pivotal for the insurance
sector’s continued development,” said Pallavi Malani, Managing Director and Partner at
BCG and co-author of the report.
The report also underscores the critical role of insurance in supporting India’s economic
aspirations. With 45% of healthcare expenses still borne out-of-pocket, enhancing health
insurance penetration is a top priority. The goal is to achieve universal coverage and reduce
out-of-pocket medical costs to less than 10% by 2047.
India aims to emerge as the world’s third-largest insurance market by 2047, with more than
100 insurtech companies operating at scale and at least 10 insurers making it to the global top
50 rankings.
