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Even though the Indian Insurance industry has been on an upward growth trajectory, for both life and non-life insurance market, little has changed on the product offerings as well as the distributor model. The insurance industry still operates with the one size fits all philosophy, which may not remain the need of the market for too long. Especially now that Insurtech – insurance companies using technology to determine product offerings – is coming into being. How will Insurtech change the landscape of Life Insurance Market in India? Nearly INR 5.53 Trillion was written as premiums in 2018 for both life and non-life insurance market. Most plans are based one one’s age and fitness when it comes to Life Insurance. But age and fitness are not the only criteria that matter. This kind of diversity inclusion can happen only when tech is involved while determining one’s premiums. Technology can reform the Indian life insurance market in two ways. In India people are either uninsured or underinsured. First and foremost, with technology intervention, the reach of insurance can be increased and various product combinations can be made to make sure it suits the needs of all kinds of people. At present, some people feel they do not need a life insurance as they are absolutely fine and have enough resources to take care of their families even if something were to happen to them. Hence the additional cost of paying the premium seems unnecessary to them. This scenario can be handled with unique product offering through Insurtech. Secondly, by harnessing technology for life insurance market in India, Insurance companies can monitor the investor’s lifecycle very closely. Based on the way the investor leads his/her life, companies can either offer rewards are intervene when there is a need to bring awareness related to risks that the investor may be taking through his/ger actions. This may go a long way in building a very safe nation. All said and done, the penetration of technology in Insurance industry is still at a nascent stage, up until now we have just started scratching the surface. It will take join efforts from companies as well as the government to bring about a change.
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