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India’s Insurance Sector Scripts Fastest Growth among G20 Nations

Zopper Team Industry Talk January 23rd, 2024
India’s Insurance Sector Fastest Growth among G20 Nations

InsurTechs in India have every reason to cheer as the latest reports from a global study mark 2024 as the beginning of a significant growth surge for insurance growth in India. 

From 2024 to 2028, India’s insurance growth is pegged to be fastest among all G20 nations. Despite macro dynamic factors including high interest rates, retail and medical inflation, the insurance industry is set for a strong growth forecast. 

The report mentions the rising demand for term life cover and the surge in terms of the country’s growing young population. It further cites that the total insurance premiums is forecasted to grow by 7.1%, and this is notable as it is well above the global average. 

Another notable point pertains to how motor insurance premiums are pegged to grow at around 8.8% annually during the next four years, particularly as product launches have been increasing since last year, sales have been robust in the last festive season and there has been significant demand for Electric Vehicles (EVs).

India’s Life Insurance Market Poised For Growth

Notably, India’s life insurance market which accounts for around three quarters of the total insurance premium is expected to grow at 6.7 percent in the next four years, whereas the non-life premiums spanning health is cited to grow at around 8.3 percent, the report indicated.  

Health Insurance Tops Non-Life Segment

In the non-life category, health insurance is the largest segment that accounted for more than 35% of premiums in 2023 and it marked an 11 per cent growth in premiums alone, making it the fastest growing non-life line of business in the past year. 

Factors propelling the increase in premium are attributable to higher awareness about the need to prioritise health insurance, innovative offerings by InsurTechs, simplified processes, minimal paperwork and rising medical costs, among others.  

IRDAI’s Latest Initiatives Boost Consumer Confidence

Establishing consumer confidence and trust is critical, more so when it pertains to the health insurance sector. Minimising the use of insurance-centric jargon is important as is the need to ask clear and easy-to-understand questions, which is now part of the IRDAI’s latest initiative of maintaining a customer information sheet. 

The message from this initiative sends out a clear statement to industry stakeholders and consumers. It is essential that people are fully aware about what insurance plans they are buying, how much they have to pay as premium and how long they are going to pay and when they can get the benefits of a certain plan and what are the mandatory disclosures that are required from their side. 

A small but important factor to keep in mind is that very few consumers are aware that disclosing an illness does not necessarily mean that it will not get covered. Such measures boost the confidence of consumers in the context of availing insurance.

Today’s Customers Demand Digital-First Options

More digital-first plans and solutions are what today’s customers demand from the insurance segment, which is why InsurTechs such as Zopper have a pivotal role to play.

InsurTech solutions offer a seamless and hassle-free experience, which is why it makes sense to evaluate enterprise-related, business-centric or organisational needs thoroughly or you can choose to book a demo instantly.  

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