Over the past few months, I’ve met with leaders in the Insurtech space and traditional insurance companies, and here are some quick things I learned about insurance trends in India in 2024.
The insurance landscape in India is undergoing dynamic changes driven by increasing awareness, technological advancements and changing customer demands. As 2024 begins, we take a look at the top five insurance trends expected to change the insurance industry in the coming year.
Technology is no longer just a driver. This is at the heart of the insurance revolution. AI-powered chatbots, robo-advisors, and blockchain-based platforms simplify processes, increase transparency, and personalize customer experiences. Increased integration between AI for risk assessment, fraud detection and claims processing is expected to make insurance more efficient and accessible.
As it is known that there are still many people who are underserved, microinsurance products are starting to receive more attention. Small, affordable policies that address specific needs, such as hospitalization, accidental death, or crop failure, provide much-needed financial security for low-income people. Explore greater collaboration between insurance companies, microfinance institutions and fintech startups to expand microinsurance in rural and semi-urban areas.
The days of uniformly applying all policies are over. Today’s customers demand flexibility and customization. On-demand insurance allows customers to purchase coverage for a specific period of time, such as pay-per-mile car insurance or short-term travel insurance. Usage-based insurance, where premiums are linked to driving or healthy habits, is also growing in popularity because it encourages responsible behavior and rewards healthy lifestyles.
Traditional insurance relies heavily on historical data, which may be limited to unpredictable times. However, parametric insurance offers a new approach that bases payouts on predetermined factors, such as weather events or natural disasters. This data-driven approach is especially important as we face climate change and extreme weather events, as it provides much-needed financial protection against the unexpected.
The insurance industry is shifting its focus from pure risk mitigation to proactive healthcare promotion. Wellness programs, disease prevention plans, and integration with wearable devices are becoming commonplace. We expect insurance companies to partner with healthcare providers and healthcare startups to provide comprehensive solutions that promote healthy living and early detection of disease, ultimately reducing healthcare costs and improving overall well-being.
Written by Rauteun Jaiswal
CEO and Co-Founder of InsuredMine
This article was first published on LinkedIn in January 2024.
