The opinions expressed by entrepreneurs contributors are theirs.
You read Entrepreneur India, an international media entrepreneurs franchise.
Startups are an engine of economic growth, especially in developing countries like India. They are at the heart of the transformation of India into the fourth economy by 2025 and play an essential role in the realization of the vision of “Viksit Bharat” by 2047.
In recent years, the Indian startup ecosystem has experienced a remarkable transformation, fueled by innovative ideas, government initiatives, increased technological urbanization and technological penetration. This ecosystem is of particular importance for the national day of 2025 startups, because more than 1.59 Lakh Startups were recognized by the Department of Promotion of Trade in Industry and Internal Trade (DPIIT) on January 15, 2025.
This milestone firmly positions India as the third start -up ecosystem on a global scale. In addition, between 2016 and October 31, 2024, startups created around 16.6 direct jobs, according to DPIIT data.
With rapid urbanization and growth in capital flows in level II and level III regions, several industries have experienced substantial growth. Among them, the insurech sector stands out as one of the fastest markets in the country. A report by the Boston Consulting Group in partnership with the India Insurech Association underlines that the Indian Surtech market has achieved income growth of 12 times, reaching 750 million USD in 2023, lengthly drawn by Sonfi startups.
Unexploited potential
Despite this growth, Anand Prabhudesai, co-founder of Turtlemint, thinks that there is an immense unexploited potential in the sector. “With the penetration of insurance currently less than 3% of GDP – less world reference – there is a huge place for expansion as the economy develops over the next 25 years. The sector of the sector ‘Insurance should increase by 12 times to 1.4 billion USD during this period.
Layak Singh, co-founder of Artivatic.ai (the renewbuy renewech arm, underlines the challenge of expanding access to insurance in small towns and villages. “Most insurance companies continue to focus on high-level cities and find it difficult to expand due to high fixed costs. Even today, insurance remains very underestimated in small towns , largely because of its structures of complex products and dependence on the physical branch-directed distribution models, “he explains.
Matilde Giglio, co -founder of the same said: “Let us first admit that health insurance is a complex product to understand. -Sure. Stress.
On the other hand, Animesh Das, MD and CEO of Acko General Insurance has echoed the same challenges, but locate the light of the opportunities that the market offers. “The Insurech sector of India is at an exciting inflection point, driven by rapid digital adoption, the evolution of customer expectations and the growing demand for affordable and personalized insurance solutions”, share -Al.
Tech on tradition: Fruits and risks
It is over the time when an insurance agent would visit your home with a bag full of documents, spending hours filling the forms.
Amit Boni, founder and CEO of Surredit Notes, “Consumers are now expecting instant policies, AI complaints treatment and personalized coverage. Insurance companies are occasionally offering Innovative and client -focused solutions. “
At the same time, the spokesperson emphasizes the risks associated with AI. “With the rise of AI, insurers are forced to completely rethink cyber-assurance. We believe that this will evolve from simple reports on web monitoring and identity theft to a much more complex environment And in constant evolution.
Layak Singh also highlights the transformative role of technology in the reshaping of the insurance sector. “AI algorithms allow instant risks assessments, rationalize application processes and improve precision-in advantage of insurers and candidates,” he explains.
Singh also warns traditional insurance companies on an imminent change in industry, predicting what he calls an era of “digital darwinism”. “Technological progress will soon exceed organizational adaptability. To survive and prosper at that time, traditional insurers had to kiss digital forces to extend their scope and reduce operational costs,” he warns.
In addition, he points out that partnerships between traditional insurers and technology -oriented startups accelerate digitization through the insurance chain.
Road for “insurance for all by 2047”
To penetrate beyond metropolitan cities, the experts underlined the need for tax relief from the government.
“Since we are approaching the Union 2025 budget, the reconsideration of the 18% TPS on health insurance policies and the introduction of tax relief measures for rent and retirement products could play a role Central in the increase in financial inclusion and security, “said Prabhudesai.
Layak Singh shares a similar perspective, adding: “With the reduction of TPS on health insurance premiums, there should also be a dedicated health regulator to effectively monitor medical costs. terms could encourage more people to ensure with adequate life cover.
Giglio echoes these challenges, but highlights another essential aspect, “the strengthening of digital and health infrastructure in small cities is crucial. Partnerships with insurers and fintech platforms, as well as the accent on poorly served areas, will lead to awareness and adoption. “
DAS believes that the realization of the vision of “insurance for all” by 2047 requires more than tax incentives. “The political improvements that encourage innovation, improve data sharing frameworks and allow deeper public-private partnerships will play a central role,” he will conclude.