India's life insurance industry has grown at a compound annual growth rate of 11% between 2017 and 2022 and is estimated to grow 9% in the next 5 years until 2027, according to a new report.
This means that India now ranks 10th in the global life insurance market ahead of China and the UK, with a 3.2 % penetration, according to the Benori Knowledge report.
Changes in consumer perception, a rise in need for financial security, product customization and balanced channels are strong indicators for the increase in insurance penetration in the country.
On the other hand, the non-life insurance market also grew to 5.8% and is projected to rise to 8% between 2023 and 2032, according to a Swiss Re Institute report. The report projects India to rise to the 6th position if the insurance penetration continues at this rate.
To consolidate on this penetration peak, insurers would need to ensure faster onboarding and speed up underwriting, a step possible through the digitalization of the insurance process.
Insurtech startups such as Zopper, which provide an API-based software platform connecting insurers and banks with third-party platforms, are already leveraging on this growth.
Last week, Zopper raised $75 million in its new funding round led by Creaegis to back its international expansion plans, improve its technology stack and data engineering functions, and make strategic acquisitions.
Zopper's API platform offers policy insurance, policy administration, claim management, regulatory reporting, lead management, and campaign management system alongside other modules.