General insurers bet on health, insurtech to drive growth in 2023

For the general insurance industry, 2022 was a year of regulatory changes, innovation and the rise of insurtech and health-based intermediaries. Going into 2023, the focus will be on growth led by health insurance and technology platforms with embedded and sachetised insurance as the key themes.

The Indian non-life insurance industry reported a 15 percent growth in the past 11 months, primarily driven by health, motor and crop insurance businesses and aided by the implementation of new-age tools and technological amalgamation, according to Rakesh Jain, CEO of Reliance General Insurance.

Regulatory and policy changes such as the ‘use and file’ guidelines and relaxed foreign investment norms have paved the way for product innovation, strategic partnerships, ease of doing business, increased access to capital flows and enhanced distribution footprint, industry participants said.

Owing to the lower financial and compliance hurdles, there are numerous new insurance companies entering the market, said Sanchit Malik, Co-founder and CEO of Pazcare, adding that this will lead to the growth of new forms of health and embedded insurance products that make extensive use of technology with an emphasis on untapped markets.

With health insurance cementing its position as a leading category post-Covid, the focus will remain on growing this segment, participants said, adding that there will also be a rise in EV motor insurance in-line with the increased adoption of electric vehicles.

The focus will then be on new-age products such as telematics-based motor and health insurance, covers for niche customer and product segments, and customised, bite-size products.