In the last few decades, India’s digital transformation has triggered global interest. In September 2023, the World Bank highlighted the transformative impact of India’s Digital Public Infrastructure. The global financial institution observed that India’s remarkable accomplishments through digital transformation have been consolidated in just six years, citing that otherwise this would have taken around five decades to materialise. At the same time, the rise of InsurTechs in India is propelled by the same digital transformative journey the country has taken forward.
Celebrating proven successes are critical to understand the scale at which the country’s digital journey has progressed. In India, consumers are increasingly empowered to make real-time cashless transactions through their phones. For instance, embedded solutions offer real-time, embedded cover when consumers book their air tickets to a certain destination or when they buy devices at a retail store. However, these changes were spearheaded through India’s rapid digital revolution.
India’s Rapid Digital Revolution through UPI
Every Indian consumer is now familiar with cashless payments as it enables them to do transactions with just a few clicks on their phone. The World Bank, in its G20 document pertaining to Global Partnership for Financial Inclusion, has lauded how India has developed a robust digital public goods infrastructure, with commendable initiatives such as Unified Payments Interface, Aadhar, Jan Dhan, among others.
The role of the UPI in harnessing digital transformation in the payments segment is significant. In fact, Unified Payments Interface (UPI) hit a historic high in August this year by crossing 10 billion transactions in a single month.
Positive Signal from National Payments Corporation of India
The data from the National Payments Corporation of India establishes that the overall value of all transactions for the month of August was at ₹Rs 15.76 lakh crore, and it drastically surpassed July’s record of ₹15.34 lakh crore. Further, the transaction volume growth touched a whopping 61 percent on a year-on-year basis for the month of August 2023. Notably, the transaction value for the same month grew 47 percent.
It is important to note that UPI is reported to have more than 330 million unique users. More importantly, it has 70 million merchants who are deploying more than 256 million QR codes that are in active use across the country.
Soaring Consumer Demand for Contextual Insurance Solutions
As we delve deeper into the segment of how digital payments are soaring across the country, it is essential to understand why the consumer demand for contextual solutions and embedded insurance is also witnessing robust demand across sectors.
As the world’s fastest-growing insurance market, India is witnessing the emergence of InsurTechs that are fast gaining market share by offering innovative solutions. What makes the Indian InsurTech ecosystem poised for greater growth is the element of affordable, personalised solutions that are part of the customer journey at the point of purchase. With just a few clicks, a consumer can buy coverage and not have to worry about anything else. Simply put, the whole experience becomes a seamless one that simplifies the overall insurance buying experience from a consumer perspective.
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