Concept and Reasons of Growth for Online Insurance Penetration in India

Abstract

The insurance industry in India has seen rapid growth in recent years. In India, the insurance sector is at the forefront of economic growth. Over the last decade, gross premiums have grown at an average rate of 7.2%, making the Indian insurance industry one of the largest in the world. Customer behavior has also changed significantly during this time, with 20-25% of them increasingly using digital channels to understand and compare insurance options. In addition, businesses are now more connected and aware thanks to the Internet of Things (IoT) and other technologies that have rapidly taken hold. Although a number of changes have been made to boost the growth of the sector, it still has a long way to go, as its share in the global insurance market is still staggeringly low. The problems facing the sector include low market penetration and density, lack of investment in insurance products, the dominance of state insurers and their declining financial health. Addressing these issues is critical to building a strong insurance business, as India's economic growth depends on how resilient its economy is to shocks.