Picture a family in a vibrant city, excited about their new home but overwhelmed by the insurance process. Imagine their joy when they find an app that simplifies everything. With just a few clicks, they can compare policies, customise coverage, and secure their dream home. This is the future of insurance—easy, accessible, and powered by insurtech. Welcome to the world of Insurtech, a fusion of insurance and cutting-edge technology, which simplifies processes for customers and transforms the insurance landscape on a global scale. From AI-driven claims processing to blockchain-enabled smart contracts, Insurtech is rapidly transforming how insurance is delivered, making it more accessible, efficient, and personalised. This shift isn’t just about convenience—it’s about reshaping an entire industry to better serve the evolving needs of the modern world.
This week, The People Weekly dives into the world of Insurtech, examining its current state, influence, and potential future. As a publication of PeopleLogic, one of the top recruiting firms in India, we’re committed to delivering timely industry news and insights.
Insurtech- Market Size & Growth
Global Market Growth and Trends
Globally, Insurtech is experiencing significant expansion. The industry’s growth is propelled by the rise of artificial intelligence (AI), machine learning (ML), blockchain, and data analytics. The global insurtech market size was USD 18.71 billion in 2023, accounted for USD 25.97 billion in 2024, and is expected to reach around USD 496.56 billion by 2033, expanding at a CAGR of 38.8% from 2024 to 2033.
Key global trends highlight the increasing prominence of hyper-personalization, powered by AI and big data. Insurers are now able to provide highly tailored policies that align with individual customer needs, resulting in more accurate risk assessments, enhanced customer retention, and reduced instances of fraud. Furthermore, the adoption of low-code platforms is gaining traction, enabling insurers to develop and launch new products swiftly without requiring extensive coding expertise. Additionally, the integration of smart contracts and blockchain technology is streamlining policy issuance and claims processing, reducing fraud, and improving transparency across the industry.
Indian Insurtech Market Size & Growth
Over the past few decades, the Indian insurance sector has undergone substantial transformation, playing a pivotal role in the country’s economic development. Initially dominated by the Life Insurance Corporation (LIC), the industry has evolved into a competitive space with multiple players offering a diverse range of products tailored to meet varying customer needs. This transformation has been driven by several key factors, including economic growth, advancements in technology, demographic shifts, and heightened consumer awareness of financial security, particularly in the aftermath of the COVID-19 pandemic. The insurance penetration stood at 4.2% of the GDP in 2022, which included 3.2% from life insurance and 1.0% from non-life (general) insurance, indicating a vital position the sector holds in the financial system of the country. The dominance of LIC in India’s life insurance segment and the robust growth witnessed in the general insurance segment have pivoted the insurance sector towards expansion shortly.
According to the Insurance Regulatory and Development Authority of India (IRDAI), India is projected to become the sixth-largest insurance market within the next decade, surpassing major economies such as Germany, Canada, Italy, and South Korea.
As per IBEF,
Premiums from India’s life insurance industry are expected to reach Rs. 24 lakh crore (US$ 317.98 billion) by FY31.
India is the 10th largest life insurance market globally.
As per a report published by Deloitte, In India the insurance market is slated to increase fourfold in size over the next 10 years.
Key Segments
Insurtech innovations are making waves across various insurance segments in India and globally:. The key segments in Insurtech are,
Motor Insurance: Insurtech platforms are leveraging AI and data analytics to offer usage-based insurance (UBI) models, where premiums are based on driving behaviour and vehicle usage. This approach provides personalised premiums, which are fairer and more transparent.
Health Insurance: The health insurance segment is transforming with the introduction of telemedicine, AI-driven risk assessments, and blockchain for patient data security. Insurtech startups in India, such as Acko and Digit, are leading the way by offering digital-first health insurance policies that cater to the modern consumer’s needs.
General Insurance: Insurtech is improving the efficiency of general insurance processes, including policy issuance, claims management, and fraud detection. Automation and AI-driven workflows are helping insurers streamline operations and offer faster, more accurate services
Microinsurance: Microinsurance is a growing segment, especially in developing countries like India. Insurtech platforms offer affordable, bite-sized insurance products aimed at low-income populations, protecting them against unforeseen risks like health emergencies, accidents, or crop failure.
Insurtech – Economic Impact
Global
Insurtech’s growth has significantly influenced both the economy and the employment landscape. By enhancing efficiency and reducing operational costs through technological innovations, Insurtech companies are driving increased competitiveness within the insurance sector. This transformation accelerates economic growth and enables the insurance industry to serve a wider audience with improved service delivery.
Globally, Insurtech is helping economies by improving financial inclusion, especially in underinsured regions. For instance, microinsurance platforms are leveraging technology to reach rural and underserved populations, offering them affordable insurance solutions. This helps foster financial resilience and stability in these regions.
India Outlook
In India, the expanding Insurtech ecosystem is generating substantial employment opportunities across various fields. Key areas such as data analytics, software development, customer service, and digital marketing are witnessing increased demand as companies seek professionals skilled in leveraging technology to optimise insurance processes. As per a report by KPMG, the Insurtech industry will need 175,000 professionals by 2025
Moreover, the shift towards digital-first solutions has opened up new roles focused on enhancing user experience, automating claims management, and personalising insurance products. This growing need for tech-enabled roles highlights the broader impact of Insurtech on job creation, particularly in an economy that is increasingly driven by digital transformation. As the industry embraces AI, automation, and cloud-based solutions, blockchain technology, and IoT there is an increasing need for professionals like
- Data scientists
AI specialists
Software developers
Digital transformation experts
ML Engineers
Blockchain analysts
Blockchain developers
Cybersecurity professionals
IoT integration & data analysis professionals
Additionally, traditional roles in underwriting and claims are evolving, with a greater focus on digital skills and innovation. The growing integration of technology in insurance is reshaping the hiring landscape, requiring professionals who can bridge the gap between insurance expertise and advanced technological capabilities, fueling employment opportunities in the evolving market.
As Insurtech continues to reshape the insurance landscape, its contributions to the economy and job market are set to expand, fostering innovation and further supporting India’s digital and economic development.
PeopleLogic Opinion
The Insurtech ecosystem stands at the forefront of a transformative era for the insurance industry, both in India and worldwide. As advancements in AI, blockchain, and automation enhance operational efficiency, personalization, and transparency, they pave the way for a more consumer-centric approach. The anticipated growth of this market not only signifies a promising horizon for economic development but also heralds substantial job creation across various sectors.
At Peoplelogic, one of the best recruitment agencies in India, specialising in BFSI, we recognize the immense potential of Insurtech in shaping the future of insurance. With a strong track record of providing talent to leading Insurtech companies, our expertise, and experience make us the ideal partner for finding top talent. Leveraging our extensive network and deep understanding of the Insurtech industry, PeopleLogic can effectively identify and attract top-tier leadership talent and a diverse pool of skilled professionals to drive innovation and growth within your organization.
