In India the insurance industry has undergone several structural changes including embracing more advanced technologies like artificial intelligence/machine learning, together with bots, the Internet of Things and big data analytics.
These digital transformation initiatives have been adopted by established insurance companies like Oriental, New India Assurance, LIC Of India, IFFCO TOKIO and ICICI Prudential. However, these firms remain vulnerable to losing some of the competitive space to startups.
According to analysis by Brink Asia, these changes have been aided by a shifting economic landscape and government policies that have liberalized the insurance sector and encourage technological innovation.
For example the National Health Protection Scheme under Ayushman Bharat has provided coverage to more than 100 million vulnerable families; the crop insurance scheme Pradhan Mantri Fasal Bima Yojana, which aided 47.9 million farmers in 2017-18; and the Pradhan Mantri Jeevan Jyoti Bima Yojana, a life insurance policy initiated by the central government to offer a life insurance policy to those who previously had no access to such services.
Other examples include ET Insure, launched by the owners of The Times Of India. In order to use online services to offer lower rates for vehicle insurance; and Coverfox, which is a website comparator offering bike, car, travel, health and life insurance.
As well as home-grown and locally funded startups, major companies are also investing. An example is Capgemini Group which has begun co-innovating with several technology companies and startups, including insurtech specialists.
The potential for digital-led growth in India’s insurance sector is captured in a new report, issued in February 2019, titled “India’s Trillion Dollar Digital Opportunity”. The report was released by the Ministry of Electronics and Information Technology (MeitY). The report was completed in collaboration with McKinsey & Company.