New Delhi, Oct 30 (NationPress) India boasts a robust insurtech ecosystem featuring over 150 active players, whose collective valuations have exceeded $15.8 billion, with revenues surpassing $0.9 billion in 2024—a staggering tenfold increase since 2019, according to a report released on Thursday.

The sector is home to two unicorns, eight companies valued between $100 million and $1 billion, and more than 45 players that have crossed the $1 million threshold. Despite a decline in funding for insurtech in 2024, health insurtechs in India secured four of the five largest deals, accounting for over 70 percent of the funding, underscoring their pivotal role in enhancing access, efficiency, and innovation.

This year, global insurtech funding fell to $4.1 billion, aligning with broader corrections in the fintech sector.

According to the joint report by the India InsurTech Association (IIA) and Boston Consulting Group (BCG), 'Regional dynamics have shifted, with Europe, the Middle East, and Africa (EMEA) gaining traction as Asia-Pacific (APAC) sees a decline. India reflects these global shifts, indicating a change in investor focus towards businesses with clear paths to profitability and scalability.'

The upcoming chapter will emphasize sustainable and profitable operational models rather than growth at any cost, the report adds.

GenAI has the potential to radically reshape the value chain—from distribution and claims to marketing and service—by enhancing efficiency, accuracy, and customer experience.

The report emphasizes the need to move beyond pilot projects and adopt these technologies on a larger scale.

“AI and GenAI present a $4 billion profit opportunity for India’s insurance sector. Organizations should concentrate on 2-3 high-value areas rather than spreading resources too thin; invest in quality data; and balance traditional and generative models to optimize costs and maximize value,” stated Pallavi Malani, Managing Director and Partner, Lead-India Insurance Practice at BCG, and co-author of the report.

When effectively implemented, AI and GenAI have already achieved 10–20 percent efficiency gains in underwriting, 20-40 percent reductions in service costs, and 3–7 percent improvements in claims payouts, she noted.

The report indicates that GenAI is emerging as the next significant force in the insurance sector. The technology has progressed from AI to GenAI and now to Agentic AI, with the insurance industry ranking second globally in terms of adoption, trailing only the technology sector.

Use cases encompass the entire operational model—covering sales and distribution, underwriting, claims, renewals, and servicing.

Major insurers utilizing GenAI are witnessing substantial impacts, including a 15–20 percent productivity boost for agents, 10–20 percent efficiency improvements in underwriting, 20–30 percent reductions in service costs, and a 3-7 percent enhancement in claims payout efficiency.

Insurtechs are pivotal in this transformation, collaborating with insurers to innovate and develop AI modules for distribution, underwriting, claims handling, and renewals.

“Global insurtech funding has plummeted from nearly $14 billion in 2021 to around $4 billion in 2024, reflecting the broader fintech downturn. India has similarly mirrored these global funding trends,” remarked Vivek Mandhata, Managing Director and Partner at BCG, and co-author of the report.