Indian Insurtech Sector: A Billion-Dollar Boom

The Indian insurtech sector has raised $2.5 billion and presents significant growth opportunities. With 150 companies, including unicorns, its revenue has multiplied 12 times in five years. There is potential for innovation in underwriting and claims, crucial for India to increase insurance penetration by 2047.

The Indian insurtech sector has garnered significant attention by mobilizing USD 2.5 billion in recent years, signaling a promising future with ample growth opportunities, as per a report released on Wednesday.

A joint study by Boston Consulting Group (BCG) and India InsurTech Association (IIA) highlights that India houses around 150 insurtech companies, including notable unicorns, soonicorns, and over 45 minicorns. The sector's revenue has surged 12-fold in the past five years, reaching USD 750 million with cumulative funding exceeding USD 2.5 billion, bringing the total ecosystem valuation to over USD 13.6 billion.

Despite a global slowdown in insurtech funding, the APAC region shows resilience. The report emphasizes the substantial opportunity for insurtechs to harness data and technology in underwriting and claims, crucial for further growth. Increasing insurance penetration, particularly in health insurance, remains a high priority towards India's vision of becoming the world's third-largest insurance market by 2047.

(With inputs from agencies.)