INDUSTRY BREAKDOWN

INSURANCE
 VALUE CHAIN
POLICY ADMINISTRATION &
PRODUCT DEVELOPMENT
CLAIMS MANAGEMENT
Evaluating and settling Using customer and market
claims, including payment, insights to design, develop
reinsurance recovery, and and deploy products and
litigation; managing services
administrative activities

UNDERWRITING DISTRIBUTION & SALES

Understanding and strategically

Analyzing risk profiles and
penetrating the addressable
premium pricing models to
market to deliver products and
bind and issue policies
services and generate revenue

MARKETING
Driving, monitoring and enabling sales
and customer retention through brand
management, advertising and customer
engagement
 KEY DRIVERS

SEGMENT COST GROWTH

INSURTECH
CLAIMS PAID
PARTNERSHIPS
PREMIUMS
COLLECTED PRODUCT
NEW MODELS,
DEVELOPMENT,
PERSONALIZED
MKT AND SALES
PRODUCTS
SUPPORT

AI &
NVESTMENT INCOME OPERATING AND AUTOMATION
(INTEREST INCOME) IT SUPPORT FOR FASTER
CLAIMS
 PORTER FIVE FORCES ANALYSIS

Power of suppliers High. Supplier being the distributor have

customer database

Bargaining power of buyers – High. They have multiple

options available

Barriers to entry – High. The overall threat is high given that

entry is subject to license and regulations

Threat of substitutes – High. Similarity in services makes •

switchover a potent threat

Competitive rivalry - High. Multiple players are there with

customized offerings
 INDUSTRY CHALLENGES

Lack of organised data makes underwriting difficult which

could lead to improper pricing

Low insurance penetration to tier 2+ cities

Distribution: Insurance is a push product which requires a lot

of selling per se; the digital mode of educating customers
doesn’t work in tier 2+ cities
INDUSTRY DYNAMICS

SEGMENT SHARE
LIFE INSURANCE 75%

MOTOR INSURANCE 8.5%

HEALTH INSURANCE 8%
 MARKET TRENDS
India's Insurance market stands at $131 Bn as of
FY22. The Indian insurance industry grew at a
CAGR of 17% over the last two decades
Life Insurance penetration has been poor in India
(~3%)… Penetration=premiums/GDP
Digital adoption: The share of digital premium
collection in retail insurance (life + general) rose
from a negligible level in FY15 to ~4% (or
US$1.3bn) in FY20 and could grow 12x to
US$16bn by FY25
The insurance density, which is calculated as the
ratio of insurance premium to population is $59
for life insurance in India while the global life
insurance density stands at $379
 MARKET TRENDS

New policies issued: During the last

year (FY21), life insurers issued
288.47 lakh new individual policies,
out of which LIC issued 75.9% of
policies and the private life insurers
issued 24.1% of policies
Mortality Protection Gap: The total
mortality protection gap in India
stands at $16.5 trillion (as of 2019)
with an estimated protection gap of
83% of the total protection need