For decades, the insurance sector has relied on intensive sales tactics, often mired in complex paperwork. However, a shift is underway as insurtech and fintech start-ups are transforming insurance into an essential service, making the process significantly more accessible.
These start-ups are embedding protection into everyday transactions—during online checkouts, within digital wallets, or alongside loans—allowing consumers to acquire insurance effortlessly. This approach is not merely about enhancing convenience; it aims to integrate timely and relevant protection seamlessly into daily life.
The insurance industry is experiencing rapid changes, driven by increasing digitization and technological innovations that benefit both companies and policyholders.
Insurtechs and fintechs are at the forefront of this digital evolution, significantly improving user experiences and simplifying the management of insurance transactions.
Fintech Start-ups
Collaboration with start-up insurtechs is currently a focal point in the industry, offering varied solutions from policy acquisition to claims management, particularly in the health and motor insurance sectors.
“Fintech start-ups are crucial in reshaping the Indian life insurance industry. Our partnerships are reinventing customer experiences through digital onboarding, simplified underwriting via AI and analytics, real-time claims processing, and robust fraud detection,” stated Goutam Datta, Chief Information & Digital Officer at Bajaj Allianz Life Insurance, in remarks to businessline.
Fintech innovations are enhancing efficiency, transparency, and scalability in processes, enabling insurers to target a wider customer base with tailored solutions at an increased pace. “For instance, our onboarding platform, which adapts across agency, bancassurance, and retail channels, is developed in collaboration with a fintech start-up. We are also leveraging AI models for underwriting and extensively in sales training and evaluation,” Datta added.
Commenting on the alignment of premium payments, Hanut Mehta, CEO and Co-Founder at BimaPay Finsure, noted that fintechs are adjusting payments to match various income streams, whether from monthly salaries, gig jobs, or autopay through UPI, thus simplifying the insurance purchasing process.
“Fintechs are making insurance a more natural choice for consumers. When protection becomes available at the right moment—such as at checkout or during a loan application—it feels timely and relevant, turning insurance into a natural part of financial management,” Mehta commented.
Rakesh Jain, CEO of Reliance General Insurance, emphasized that fintech platforms enable insurers to better understand risks by utilizing data from multiple sources, including devices and online activities. “On the operational side, fintechs simplify processes like policy issuance, claims handling, and customer support, resulting in faster and more cost-effective services,” Jain said.
Kamalakar Sai Palavalasa, Founder & Group Chief Executive Officer at MicroNsure, remarked that start-ups are improving accessibility, driving financial inclusion, and fostering significant growth within India’s under-penetrated insurance market. Insurtechs are revolutionizing how insurance is bought, sold, and serviced, speeding up processes that have traditionally involved extensive paperwork and delays.
Industry data indicates that the insurtech ecosystem has expanded significantly, with revenues increasing twelvefold in five years, reaching $750 million by 2023. This growth is supported by over 150 active start-ups and a cumulative valuation of $3.6 billion. By utilizing mobile platforms and usage-based pricing, insurtechs are making micro-insurance options feasible for rural and underserved communities, contributing meaningfully to financial inclusion.
In the realm of general insurance, particularly regarding health coverage, there is a pressing need for greater involvement from fintech and insurtech companies to accelerate processes. Kiran Kalakuntla, Co-founder and CEO at ekincare, highlighted that the health insurance sector is undergoing a substantial transformation, with outpatient care becoming increasingly central—accounting for nearly 60 percent of healthcare expenditures in India.
The Road Ahead
As artificial intelligence (AI) continues to evolve, insurers must collaborate more closely with fintech companies to optimize operations. A productive partnership requires insurers to combine their extensive risk expertise with the technological capabilities of fintechs to create faster, simpler, and more user-friendly services. Yogesh Agarwal, Founder and CEO at Onsurity, noted that modern insurtechs are reshaping the growth trajectory of Indian insurance by making quality coverage widely accessible.
The growth outlook for the insurtech market is robust. Valued at approximately $0.90 billion in 2024, it is forecasted to soar to $11.90 billion by 2033, at a compound annual growth rate (CAGR) of 29 percent, according to IMARC.
The insurance industry finds itself at a pivotal moment, driven by advancements in AI-powered fintech applications. Future collaborations will likely emphasize the responsible integration of technologies like generative AI, predictive analytics, and intelligent automation to anticipate risks and provide highly personalized experiences.
A strong partnership framework between insurers and fintech players will be essential for fostering innovation while ensuring robust governance, data security, and exceptional customer service. The waiver of Goods and Services Tax (GST) represents a significant reform that paves the way for insurtech leaders to expand insurance access in rural areas, introduce micro-products for daily earners, and develop AI-driven coverage solutions that align with customer needs.
“Fintech is not just digitizing insurance; it is enhancing protection accessibility, affordability, and comprehension, especially in tier-2 and tier-3 cities in India, where traditional distribution channels have struggled. This increased reach is critical, but long-term success requires that consumers feel confident and informed,” stated Saurabh Vijayvergia, Founder and CEO of CoverSure.
Published on September 29, 2025
