- Shwetank Verma of the Indian Insurtech Association stressed that the online insurtech segment would create 1 lakh direct jobs by 2025.
- Shishir Mankad of Praxis Global Alliance expects 2.5-3 lakh direct and indirect jobs to be created by 2024.
- Auto, health and life insurance is expected to continue to make up a large portion of online insurance sales in India.
Online insurance sellers in India are expected to create 250,000 to 300,000 jobs over the next three years as the insurtech sector is on the cusp of breakthrough growth.
Shishir Mankad, Managing Partner and Head of Financial Services at Praxis Global Alliance, told Business Insider that this would include both direct and indirect employment opportunities in all industries – technology as well as functional roles in product design and analysis, customer journey design, automation. as fulfillment roles in sales, claims processing and more.
The segment is expected to create an additional 2-3 million people part-time earning opportunities over the same period, Mankad added. Meanwhile, Shwetank Verma, co-founder of the Indian Insurtech Association and founder of investment firm Leo Capital, said in an email interaction with Business Insider that online insurance sellers in India are expected to double their premiums by 2025 and create direct jobs for over a lakh.
“Insurance distribution in India has changed in a very different way.
There was a time when distribution was largely based on the street model. LIC [Life Insurance Corporation] alone has around 1.5 million agents and the rest of the industry combined nearly another 0.5 million. There are a similar number of executives who are employed in the industry. However, over the past 5 to 7 years there have been attempts to go digital
Distribution infrastructure. These efforts will increase over the next few years, ”said Sanjib Jha, CEO of Coverfox.
Indian online insurance providers include PoliceBazaar, Digit Insurance, BankBazaar, Coverfox and others who are IPO linked. ACKO General Insurance is one of the startups that issues its own insurance policies instead of being a third party provider.
Dexter Capital founder Devendra Agrawal stated in an email interaction with Business Insider that the Indian insurtech segment is a very large subsector of fintech and is largely dominated by traditional companies. The current offering offers very little innovation and ease of use, but there is room for more innovation as more startups emerge in the segment.
He added that the new Insurtech segment will likely focus on three things. First, new product launches. Second, a more user-friendly user interface and processes. Third, newer models would be introduced in insurance sales.
Shwetank Verma of the Indian Insurtech Association took a similar view, emphasizing that there is a lot of room for innovation in the insurtech sector and new categories like cyber insurance and parametric insurance – a non-traditional insurance product that has pre-determined payouts based from a. offers a triggering event – and would gain in importance in this decade by 2030.
“Most of Insurtech’s actions have been on the distribution of policies and some insurers that are digital first. While these categories are sure to grow, we believe the sector is at a tipping point. We expect a lot more action in other parts of the insurance value chain, be it underwriting or risk management or claims handling or product design like microinsurance or embedded products, ”said Mankad of Praxis Global Alliance.
Even as the Indian insurtech sector advances, health, auto and life insurance, both online and offline, will make up the bulk of insurance sales, according to industry experts.
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