The Indian insurance industry, with the support of Insurtechs, has quickly moved towards digitalization, adoption of technology, and new distribution channels for reaching customers since the start of covid. To put the growth of InsurTechs in context, here are a few members from a report published by the India InsurTech Association and BCG in Feb 2021.
Global Funding in InsurTechs has grown from about $2 billion in 2016 to $6 billion in 2020. In India, too, funding has seen an increase from a modest base of $11 million in 2016 to $287 million in 2020. While digitization is being embraced by all insurers, 2022 will witness new trends for the next level of tech innovation in the Insurance sector.
In the past two years, we have seen insurers invest heavily in the digitization of distribution, policy issuance, and digital customer communication. However, in 2022, we anticipate that issuers will invest significantly in bringing automation to other areas of the insurance value chain such as underwriting, core policy admin systems, risk management, and claims. Indian insurers are evaluating multiple initiatives in areas of workflow automation, AI automation.
The insurance industry is built on the understanding and management of risk hence, the explosion of available data will result in a golden period of significant data-driven innovation. Embedded insurance products are sold at the point of sale as add-ons or bundles to other core products or services.