Insurtech's leading disruption with sachet-sized products: Avendus
The report said that the recent IRDAI proposal that allows investors to take 25% stake without assuming promoter responsibilities has also helped in deepening interest.
January 26, 2023 / 10:13 AM IST
Health insurance is going to drive the non-life Insurance business, an Avendus report has said.
Insurtech's have created a disruption with their bite and sachet-sized products changing the perception of retail insurance industry, a report by Avendus has said.
The report also highlighted the importance of growing digitisation in the industry that is helping in driving sales by making the process simpler.
"Digitizing sales process of agents would increase their speed and efficiency. This would enable them to process
applications with higher efficiency."
The health insurance business is poised to gropw into a $25 billion market in medium to long term, a report by Avendus has said.
The health segment will drive growth within non-life insurance as people are getting more aware of the benefits after COVID, the report added.
Insurance penetration in India is still at a nascent stage and the health segment offers a huge potential for the rapid growth going forward.
"Targeted and curated products, introduction of wellness offerings for comprehensive coverage, digitization across the value chain, focus on new sales channels (direct/online & bancassurance) and increasing medical costs offer tailwinds to health insurance," the report highlighted.
The report said that there has been an influx of capital in insurers made possible by business-friendly policies.
FDI limit in insurance has been raised to 74% to make the foreign participation easier in India's insurance industry.
The report said that the recent IRDAI proposal that allows investors to take 25% stake without assuming promoter responsibilities has also helped in deepening interest.
The challenges that have hampered growth of the industry include lack of awareness, under-insurance, low disposable income and inefficient claims management
