“The rapid economic expansion, supported by digital infrastructure and innovation will play a defining role to make the insurance market in India as one of the largest across the globe. The market size is estimated to reach $200 billion by 2027, at the present growth rate however we have aspirational plans, and we expect the market to grow by leaps and bounds, and the contribution of venture capital, private equity and family offices in nation building is a step in the right direction. With the support of the ecosystem, the burgeoning Indian insurance sector gains additional capital source as well as help foster new products and solutions to overcome present challenges of affordability and accessibility,” said Panda.
Insurance penetration in India skilled a rise in momentum in current years shifting to 4.2% in 2021 from 3.76% in FY20. Multiple causes are cited for this growth, particularly, ease of doing business, deployment of digital options by insurers, change in the perspective of shoppers and their realization of economic safety, evolution of merchandise, together with new regulatory framework concerning product approval and distribution by IRDAI.
“With India today ranking 10th in the global life insurance market and ahead of China (at 2.4%) and UK (at 3%), we are suitably positioned to cater to the rising demand of younger and digital-first consumers emerging from smaller and newer geographies and across life and non-life. Customer experience, cost of distribution and product innovation are the top three areas of disruption for insurance companies. Thereby, the sector transformation has resulted in the introduction of innovative and tech-first products which solve issues of accessibility, cost-efficiency while elevating customer experience, prompting an unprecedented scale of behavioral change,” said Karthik Reddy, Chairperson, IVCA and Co-founder and Managing Partner, Blume Ventures.