For the general insurance industry, 2022 was a year of regulatory changes, innovation and the rise of insuretech and health-based intermediaries. Going into 2023, the focus will be on growth led by health insurance and technology platforms with embedded and sachetised insurance as the key themes.
The Indian non-life insurance industry reported a 15 per cent growth in the past 11 months, primarily driven by health, motor and crop insurance businesses and aided by the implementation of new-age tools and technological amalgamation, according to Rakesh Jain, CEO of Reliance General Insurance.
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Regulatory and policy changes such as the ‘use and file’ guidelines and relaxed foreign investment norms have paved the way for product innovation, strategic partnerships, ease of doing business, increased access to capital flows and enhanced distribution footprint, industry participants said.
New age products
Owing to the lower financial and compliance hurdles, there are numerous new insurance companies entering the market, said Sanchit Malik, Co-founder and CEO of Pazcare, adding that this will lead to the growth of new forms of health and embedded insurance products that make extensive use of technology with an emphasis on untapped markets.
With health insurance cementing its position as a leading category post-Covid, the focus will remain on growing this segment, participants said, adding that there will also be a rise in EV motor insurance in-line with the increased adoption of electric vehicles.
The focus will then be on new-age products such as telematics-based motor and health insurance, covers for niche customer and product segments, and customised, bite-size products.
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“Driven by reforms and the burgeoning ecosystem of digital health; the emergence of digital intermediaries across the entire customer lifecycle, increased insurance awareness and participation from ‘Bharat’ and SME sector, will accelerate growth across segments,” said Bhargav Dasgupta, MD and CEO of ICICI Lombard General Insurance.
Crucial theme
Customer centricity will also be a crucial theme as insurers and intermediaries build and personalise distribution channels through partnerships and digital alliances to offer seamless and instant services, reach out to varied customer segments and improve insurance penetration, participants said.
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“Customer expectations are evolving. They also want more trusted, relevant, and personalized interactions with their insurers,” said Shanai Ghosh, MD and CEO of Edelweiss General Insurance, adding that insurers will need to strike a balance between digital adoption and human intervention to simplify products and the customer journey, and build positive experiences.