S&P: India second-largest insurtech market in Asia pacific

According to S&P Global Market Intelligence data, India has the second-largest insurtech market in the Asia-Pacific region next to China. Its market accounts for 35% of the US$3.66bn of venture capital in the sector’s region. 

Currently, there are around 335 private insurtech firms operating in the Asia Pacific with 122 of them disclosing US$3.66bn in aggregate capital raised through private placements.  

Details of the S&P Global Market Research report 

The report includes information on both China and India’s position in the APAC insurtech market. "China and India are collectively home to nearly half of private insurtech companies in the APAC region and attracted about 78% of the investments. The two markets will continue to corner the lion's share of investor interest on account of their large and fast-growing insurance markets”, the report said.

Stating specific details around India’s insurance market in the Asia Pacific, Sampath Sharma Nariyanuri, a fintech analyst with S&P Global Market Intelligence, said: "India is the second-largest insurance technology market in Asia-Pacific. India has at least 66 insurtech companies and accounted for 35% of the $3.66 billion in insurtech-focused venture capital invested in the APAC region," said "Insurance technology investors are attracted to India since it is one of the fastest-growing insurance markets in the world”. 

In the twelve months ending on 31 March 2020, insurance premiums in India came to a total of US$107bn following a 5-year rise of 10% in the compounded annual growth rate (CAGR) from the 2015 financial year to the 2020 financial year. 

The report also states: "While big techs are vying to become digital intermediaries in the insurance space, established carriers are building proprietary digital channels. Startups that assist both incumbents and big techs in making this transition will likely emerge as winners”.