India is second largest insurtech market in Asia Pacific, S&P World says
A minimum of 335 non-public insurtech corporations are working within the Asia-Pacific, with about 122 of them disclosing $3.66 billion in combination capital raised through non-public placement offers.
“China and India are collectively dwelling to just about half of personal insurtech firms within the APAC area and attracted about 78% of the investments,” a report by S&P World Market Intelligence mentioned. The 2 markets will proceed to nook the lion’s Share of investor curiosity on account of their massive and fast-growing insurance coverage markets, the report added.
“India is the second largest insurance coverage know-how market in Asia-Pacific. India has at the least 66 insurtech firms and accounted for 35% of the $3.66 billion in insurtech-focused enterprise capital invested within the APAC area,” mentioned Sampath Sharma Nariyanuri, a fintech analyst with S&P World Market Intelligence. “Insurance coverage know-how buyers are interested in India because it is without doubt one of the fastest-growing insurance coverage markets on the earth.”
Insurance coverage premiums in India totalled $107 billion in India for 12 months ended March 31, 2020, after rising at a compounded annual progress fee (CAGR) of 10% from FY15 to FY20, he added.
The report famous that huge know-how firms like Tencent Holdings, Ant Group Co. Ltd, Amazon.com Inc. and Seize Holdings Inc. will affect the insurtech ecosystem within the area, because of their position as buyers, companions and rivals.
For know-how startups chasing customers on-line, collaborations with well-liked life-style and e-commerce platforms could possibly be vital for scale.
“Whereas huge techs are vying to turn out to be digital intermediaries within the insurance coverage area, established carriers are constructing proprietary digital channels. Startups that help each incumbents and massive techs in making this transition will seemingly emerge as winners,” the report said.