India’s Leading BFSI and FinTech Companies 2023

28 | India’s Leading BFSI and FinTech Companies 2023 [ INDIAN INSURANCE SECTOR OVERVIEW ] Health insurance sector has shown consistent growth in net premium earned since last five years given the increased thrust on covering heath related risks. While net premium earned for fire insurance declined for the first time in last five years by 8.1% in FY22, motor insurance saw a muted growth of 3.3% in FY22. In case of private non-life insurers, growth in net premium earned was mainly driven by marine and fire insurance which registered a growth of 34.7% and 27.6% in FY22. In case of public non-life insurers, a decline in net premium earned for fire (negative 23.7%) andmotor (negative 10.9%) pulled down public sector insurance overall growth for FY22 INDUSTRY TRENDS Gr owi ng use o f advanced analytics & artificial intelligence: An increasing number of non-life insurers are using advanced data analytics and artificial intelligence to offer customized solutions. Protecting investingand consumer interes t s imul taneous l y: As more and more non-life insurers go public and list on the stock exchanges, they have to put shareholders’ interest on par with consumer interest Growingpreferenceforcustomized insurance plan: Customers are increasingly preferring customized insurance plans against off-the- shel f products. There is also growing trend of cross-selling, upsell, flexible coverage options and microinsurance. CHALLENGES Lower insurance penetration: Insurance penetration and density for non-life is substantially lower than the global average. This has also led to a massive protection gap. Raising insurance penetration is the biggest challenge faced by the industry. Rising cost of investing in digital techno l ogy : The i nc reased competition in non-life insurance segment has led every non- life insurer to leverage digital technologies for gaining market share. While this has improved productivity for the insurers, it has also led to higher costs of investing in these technologies. Net Premium earned - Public sector split (%) Source: IRDAI Dun & Bradstreet