INDIAN GENERAL INSURANCE BLUE EYE BOY FOR INVESTORS

Insurance and Digital health system are one of the most attractive investment destinations for PE and VC funds. The General Insurance Industry is under an immense evolution phase where we witnessed many changes this calendar year till now. The industry will be attracting one of the highest Private Equity or VC Funds in the coming years. The covid -19 crisis has changed the landscape of the General Insurance demand and its product demand is also under evolution.  Few data will give bigger clarity of the larger picture of the industry evolution.

·         Electronic health Insurance Policies

·         Video-based  KYC

·         Fastag Linked Motor Insurance

·         New product innovation for MSME and Dwelling Units.

·         Standardised Life Insurance product segments being introduced for MSME and small enterprises.

A     Amazon Entry into Motor Insurance 

The list innovation speaks itself how the industry is going to change and how they are planning to broaden the curve of insurance coverage. Companies like Insurance Dekho are raising capital to the tune of Rs 147. cr for expansion of the business. The point is that General Insurance is now big business for the financial distribution industry. Eight Indian digital health companies received VC funding in Q3 2020 totalling $40 million while global VC funding for digital health companies in the first nine months (9M, January-September) of 2020 broke all previous 9M funding records, bringing in $10.3 billion. Life insurance has always being a push product but thanks to Covid where Term Insurance got huge attention from people to cover life risk.  General Insurance on the other hand is now getting significant attention as risk management is becoming an essential point.

Health insurance already got the blessing of Covid -19 risk but other insurance segments like Fire and Burglary, Home Insurance, Group Medical insurance etc are getting more attention. Mutual Fund Industry has more than 100000 lac AMFI certified advisors who are now struggling to survive and hence Insurance is high demand product for them. Further, the recent pandemic has created job loss and compels people to search for alternative income source and hence Insurance is now a hot cake. Digital Health along with Insurance is garnering millions which is just a small pie of the larger demand.

It’s a mouth-watering opportunity for the whole financial distribution community. This is the prime reason why this Industry will attract many web aggregators and Insurance Marketing Firms to come up and start the business. A company like Mahindra Insurance is coming up with Pay-bima platforms. Indian statistics speak aloud that insurance is an under-penetrated product and hence it has a long way to go before India raises its to bar equal to global insurance coverage level.

Wealth-tech platforms are now integrating insurance platforms and getting into the business as earning in GI is significant enough and it is continuous never-ending business. The renewals are as equal as a new business. Video KYC is now getting adopted in the Industry.

National Digital Health Mission will bring down the cost of health insurance in the coming days. Underwriting profits are under pressures most of the calculations are made on past health records and nothing on forthcoming projections.  Due to covid the size of the Indian health Insurance segment has grown up to 27% to 30% within March to July 2020.

People are now getting aware of risk, losses and protection of wealth from any sort of calamity. Covid Insurance –Corona Insurance crossed - Kavach policies cross 1 crore milestone. The market for Corona-Kavach policies has grown 10-fold in a month to 1.1 crores from 15 lakh This number will increase more and those who are taking this are also opting for Term Insurance policies also.  People are simply doubling the insurance coverage of Term Policy.  Insurance companies have even come up with Term Rider policies like Max Life. Travel Insurance is also getting Covid Coverage which is a big relief for the Travel Insurance. Altogether the Industry is under immense evolution and is going to create huge employment, individual business models of agency and wider coverage for the people. In the coming.