The government's efforts to digitize are spurring innovation in the insurtech sector, according to the CEO of InsuranceDekho.

The Indian insurtech sector has developed microinsurance products specifically tailored to safeguard the economically vulnerable population, providing insurance coverage for health, agriculture, and livelihood. Ankit Agrawal, Founder and CEO of InsuranceDekho, highlights that the government's drive toward digitization and technology adoption has spurred innovation within the insurtech industry, promising positive growth prospects. He emphasized that the government's encouragement of insurtech innovation is a significant step toward creating innovative insurance products, distribution channels, and customer engagement solutions.

Agrawal pointed out that initiatives like the 'Digital India' campaign and the implementation of Aadhaar-based e-KYC have facilitated seamless customer onboarding, enabling insurers to offer digital insurance products and services effectively. Additionally, to bolster the sector, the government has launched Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) to provide financial protection against healthcare expenses for millions of vulnerable families, thus expanding health insurance coverage.

Furthermore, the insurtech sector has introduced microinsurance products designed specifically to safeguard the economically disadvantaged population, offering coverage for health, agriculture, and livelihood. Agrawal stated that these products aim to maximize insurance coverage for underprivileged sections of society.

Moreover, the industry has been actively integrating technology with the assistance of insurtech startups to utilize digital platforms for streamlined distribution, claim processing, and customer engagement, ensuring easy access to various insurance products. Studies have indicated that increased insurance penetration positively impacts the economy by reducing overall financial distress and making long-term growth capital accessible to key nation-building sectors.

Agrawal suggested that, in pursuit of the broader goal of achieving a fully insured nation by 2047, the government should consider exempting GST on insurance policies to reduce insurance premiums. Additionally, raising tax exemption limits under 80C to promote savings and encourage insurance coverage could further stimulate economic growth, he added.