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The government's push towards digitalisation and technology adoption has catalysed innovation within the insurtech industry, which bodes well for bolstering the growth prospects of the industry, Ankit Agrawal, Founder and CEO, InsuranceDekho, has stressed.

In an interaction with IANS, he said that the government’s decision to promote Insurtech innovation can be considered a positive step towards the development of ingenious insurance products, distribution channels, and customer engagement solutions.

“Initiatives such as the ‘Digital India’ campaign and the introduction of Aadhaar-based e-KYC have facilitated the seamless onboarding of customers and enabled insurers to offer digital insurance products and services,” Ankit Agrawal noted.

Furthermore, to give the desired impetus to the sector, the government has also launched Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) to provide financial protection against healthcare expenses for millions of vulnerable families, thereby expanding the health insurance coverage.

The Indian insurtech sector has also come up with microinsurance products tailored specifically to protect the economically vulnerable population with insurance coverage on health, agriculture, and livelihood.

“The products have been devised with the intention of driving maximum insurance for the otherwise underprivileged sections of society,” said Agrawal.

In addition to this, the industry has been making great strides to expedite technology integration with the help of Insurtech startups to leverage digital platforms for facilitating distribution, claim processing, and customer engagement aimed at enabling easy access to various insurance products.

Various studies have shown that increased insurance penetration multiplies the economy by reducing overall financial distress and making long-term growth capital available to important nation-building industries.

“Working towards the larger goal of becoming a fully insured nation by 2047, the government should consider the exemption of GST on insurance policies to bring down insurance premiums,” Agrawal said.

This can further be supported by a rise in tax exemption limits under 80C to prioritise savings and promote insurance coverage, for giving the desired fillip to economic growth, he added.