New Delhi:India is the second largest insurance technology market in the Asia Pacific, accouting for 35% of the $3.66 billion of the venture capital coming into the sector in the region, according to S&P Global Market Intelligence data.
At least 335 private insurtech firms are operating in the Asia-Pacific, with about 122 of them disclosing $3.66 billion in aggregate capital raised via private placement deals.
“China and India are collectively home to nearly half of private insurtech companies in the APAC region and attracted about 78% of the investments,” a report by S&P Global Market Intelligence said. The two markets will continue to corner the lion’s share of investor interest on account of their large and fast-growing insurance markets, the report added.
“India is the second largest insurance technology market in Asia-Pacific. India has at least 66 insurtech companies and accounted for 35% of the $3.66 billion in insurtech-focused venture capital invested in the APAC region,” said Sampath Sharma Nariyanuri, a fintech analyst with S&P Global Market Intelligence. “Insurance technology investors are attracted to India since it is one of the fastest-growing insurance markets in the world.”
Insurance premiums in India totalled $107 billion in India for 12 months ended March 31, 2020, after growing at a compounded annual growth rate (CAGR) of 10% from FY15 to FY20, he added.
The report noted that big technology companies like Tencent Holdings, Ant Group Co. Ltd, Amazon.com Inc. and Grab Holdings Inc. will influence the insurtech ecosystem in the region, thanks to their role as investors, partners and competitors.
For technology startups chasing consumers online, collaborations with popular lifestyle and e-commerce platforms could be important for scale.
“While big techs are vying to become digital intermediaries in the insurance space, established carriers are building proprietary digital channels. Startups that assist both incumbents and big techs in making this transition will likely emerge as winners,” the report stated.
