What Is Driving India’s Insurtech As The Fastest-Growing Segment In the $1.3 Tn Fintech Market?
- Insurance penetration in India was 1% in 2021 compared to the 4% global average
- This makes insurtech the fastest-growing fintech sub-segment in terms of market opportunity, growing at a CAGR of 57%
- According to the latest fintech report by Inc42, 300+ active insurtech startups in India raised $1.8 Bn between 2014 and Q1 2022
The Indian fintech market is one of the fastest-growing globally, estimated to reach $1.3 Tn by 2025, growing at a CAGR of 31%. Among its key sub-sectors, lending tech is likely to account for 47%, or $616 Bn, followed by insurtech at 26% ($339 Bn) and digital payments at 16% ($208 Bn).
In the wake of the pandemic, the Indian insurance sector (both life and non-life categories) witnessed considerable growth. According to IRDAI data, insurance penetration in India went up in FY21 to 4.2% from 3.76% in FY20.
However, as Indian Angel Network (IAN) cofounder Raman Roy says, less than 15% of the country’s 1.3 Bn population is served by the financial services sector, while insurance penetration was just 1% in 2021, which is very low compared to the 4% global average.
