2023 promises to be a transformative year for the insurance industry and for good reason. The post-pandemic era has put the insurance industry on the precipice of great change and on the right track to fulfilling IRDAI’s mission - ‘Insurance for all by 2047’. As of FY22, the Indian insurance market clocked $131 billion and is expected to reach $200 billion by 2027, according to industry experts. Watching the rapid growth, the government has made important amendments to insurance acts that have been crucial to the boost of the sector. Let’s discover how it shaped the insurance industry as it stands today.
Past
Until now the insurance industry has been operating on a 20+ years old architecture but with the transformative approach of the Indian government, all that is going to change. The key amendments made to the Insurance Act 1938 and the Insurance Regulatory and Development Authority Act 1999 have put the Indian insurance industry on the fast track towards becoming the sixth-largest insurance market in the world. Scrapping of INR 100 Cr entry cap for insurers to permission for insurance companies to invest up to 30% of assets in the BFSI sector; the proposal to launch a composite insurance licence has set the stage for 2023.
Present
The Indian insurance industry in 2023 would see a significant shift with technological transformation at the heart of it. Other than deeper insurance penetration into grassroots India (thanks to the post-Covid world!), the industry has become more customer-centric than ever before. Customers are expecting an improved digital experience with a new awareness of privacy and cyber security. Even more so, customised insurance plans over ‘off-the-shelf’ ones have become the need of the hour and are more suited to their requirements. ‘Innovation’ and ‘Technology’ would be the theme of the insurance industry in 2023.
Considering the latest developments, the year 2023 would be both transformative and promising for the Indian insurance industry. Technology-enabled customisation would accelerate insurance penetration to tier 3 and tier 4 cities of India, taking us much closer to the dream of a completely insured India.
