
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 2.09 Billion |
Market Size (2030) | USD 3.71 Billion |
CAGR (2025 - 2030) | 12.20 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
India Online Insurance Market Analysis
The Online Insurance Market In India Market size in terms of premium value is expected to grow from USD 2.09 billion in 2025 to USD 3.71 billion by 2030, at a CAGR of 12.2% during the forecast period (2025-2030).
India's insurance landscape is undergoing a dramatic digital transformation, driven by increasing internet penetration and changing consumer preferences. The sector has witnessed significant growth, with insurance premium penetration reaching 4% of GDP in 2023, indicating growing awareness and adoption of online insurance products. Insurance companies are rapidly embracing digital tools and technologies to enhance their service delivery and customer experience. The emergence of insurtech platforms has revolutionized traditional insurance distribution channels, offering seamless digital experiences from policy purchase to claims settlement.
The life insurance sector has demonstrated remarkable resilience and growth, recording a 12.5% surge in 2022, particularly driven by increasing demand in rural areas. Insurance providers are introducing innovative products like ULIPs, Endowment, and Retirement Plans tailored to evolving customer needs. The industry has witnessed a significant shift towards integrated platforms that offer comprehensive insurance solutions across multiple categories. Web aggregators and digital insurance marketplaces are playing a pivotal role in simplifying online insurance policy purchase decisions through technology-enabled solutions and mobile applications.
The non-life insurance segment has shown robust performance, with insurers recording a 16.4% surge in gross direct premiums during 2022-23. Digital channels have become increasingly important for policy distribution, with insurance companies investing heavily in their digital infrastructure to provide end-to-end online insurance services. The industry has witnessed the introduction of innovative products like 'Pay as You Drive' and 'Pay How You Drive' policies, reflecting the sector's responsiveness to changing consumer needs. Insurance providers are leveraging artificial intelligence and machine learning to enhance risk assessment and streamline claims processing.
The travel insurance segment has demonstrated significant growth potential, with approximately 78.71 lakh lives covered under overseas travel insurance policies in 2022-23. Insurance Web Aggregators are playing a crucial role in market expansion, with 25 certified aggregators operating through online and distance marketing channels as of March 2023. The industry is witnessing increased collaboration between insurers and fintech companies to develop innovative distribution models and enhance customer experience. Regulatory bodies are actively supporting insurance digitalization through initiatives like the Insurance Web Aggregator portal, while maintaining robust oversight to ensure consumer protection.
India Online Insurance Market Trends
Growing Internet Penetration and Digital Adoption
The expanding internet user base in India has fundamentally transformed the insurance landscape, creating unprecedented opportunities for both established insurers and innovative startups to extend their reach across the nation. The digital revolution has particularly impacted premium payment methods, with online insurance premiums now accounting for over 70% of total premium payments in FY23. This shift towards digital channels has been further accelerated by the emergence of integrated digital insurance platforms that offer seamless customer journeys and holistic ownership experiences, making insurance products more accessible to a broader demographic.
The digital transformation has particularly benefited from the presence of web aggregators, who serve as crucial intermediaries in the online insurance ecosystem. As of March 2023, India boasted 25 certified insurance web aggregators, authorized to sell life, general, and health insurance products through online and distance marketing channels. These platforms have revolutionized the insurance purchasing experience by enabling instant policy issuance and providing streamlined services, reducing policy issuance times from days to mere minutes. This efficiency has resulted in a notable 20% increase in customer satisfaction, highlighting the positive impact of digital insurance solutions on consumer experience.
Rising Insurance Awareness and Government Initiatives
The Indian insurance landscape is witnessing a significant transformation driven by increasing awareness and robust government initiatives. The government's flagship program, Ayushman Bharat PMJAY SEHAT, recognized as the world's largest health insurance/assurance program, has played a pivotal role in expanding insurance penetration. This comprehensive scheme, which covers secondary and tertiary care hospitalization services across both public and private hospitals, has set a new benchmark in making insurance accessible to the masses, particularly benefiting the underserved segments of society.
The regulatory environment has also evolved to support insurance penetration, with the government implementing strategic policy changes to boost the sector. A significant development has been the increase in Foreign Direct Investment (FDI) limits from 49% to 74%, providing insurers with the necessary growth capital to fuel expansion and innovation. Additionally, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced various initiatives, including the 'Sabse Pehle Life Insurance' campaign, which aims to educate and motivate the public towards insurance adoption through various media channels and industry collaborations. These efforts are particularly significant given that insurance penetration stood at 4% of GDP in 2023, indicating substantial room for growth.
Technological Advancements in Insurance Distribution
The integration of advanced technologies has revolutionized digital insurance distribution in India, with insurers increasingly leveraging artificial intelligence, machine learning, and blockchain to enhance their service delivery. These technological innovations have enabled insurers to offer more sophisticated risk assessment capabilities and implement data-driven mitigation strategies. For instance, in the motor insurance segment, insurers have introduced innovative concepts like 'Pay as You Drive' and 'Pay How You Drive' as add-ons to basic motor policies, demonstrating how technology can enable more personalized and usage-based insurance products.
The technological transformation extends beyond product innovation to encompass the entire insurance value chain. Insurance companies are rapidly developing advanced omnichannel systems and enhancing their online interfaces to provide superior customer experiences. This digital evolution has been particularly evident in claims processing, where the implementation of digital tools has significantly improved turnaround times and enhanced transparency. The success of this technological integration is demonstrated by platforms like PhonePe, which has facilitated 75 million vehicle insurance quotes and a cumulative 400 million quotes across various insurance products, showcasing the scalability and efficiency that e-insurance brings to insurance distribution.
Segment Analysis: By Type
Life Insurance Segment in Online Insurance Market in India
Life insurance dominates the online life insurance market in India, commanding approximately 71% market share in 2024, reflecting its crucial position in the digital insurance landscape. The segment's prominence is driven by increasing digital adoption and the introduction of modern products like ULIPs, endowment, and retirement plans tailored to evolving customer needs. The government's initiatives and digitalization efforts have significantly contributed to public awareness about insurance's role in financial security. The IRDAI's 'Sabse Pehle Life Insurance' initiative continues to educate and motivate the public towards online life insurance through various media channels and industry collaborations. The segment's growth is further supported by the expansion of digital platforms and web aggregators, which have made life insurance products more accessible to the Indian population.

Motor Insurance Segment in Online Insurance Market in India
The motor insurance segment is emerging as the fastest-growing category in India's online auto insurance market, projected to grow at approximately 15% during 2024-2029. This remarkable growth is primarily driven by the robust expansion of India's automobile industry and increasing digital adoption in insurance purchases. The surge in insurtech companies is fundamentally reshaping the online auto insurance landscape, introducing innovative service delivery methods and enhanced risk assessment capabilities. Insurance providers are rapidly embracing digital tools to offer seamless customer experiences, while partnerships with automotive manufacturers and financial institutions are making insurance more accessible within the ecosystem. The introduction of technology-centric concepts like 'Pay as You Drive,' 'Pay How You Drive,' and 'Floater Policy' as add-ons to basic motor policies is further accelerating this segment's growth.
Remaining Segments in Online Insurance Market in India
The online health insurance and other insurance segments complete the online insurance market landscape in India. The online health insurance segment has gained significant traction with the introduction of specialized products and digital-first solutions, particularly focusing on family health coverage and senior citizen plans. The other insurance segment, encompassing products like online travel insurance, online property insurance, and marine insurance, continues to expand through digital channels, offering increasingly sophisticated and customized solutions. Both segments benefit from the growing penetration of digital platforms and the increasing preference for online insurance purchases among Indian consumers, supported by improved digital infrastructure and user-friendly interfaces.
India Online Insurance Industry Overview
Top Companies in Online Insurance Market in India
The online insurance landscape in India is witnessing significant transformation through product innovation and technological advancement. Companies are increasingly leveraging artificial intelligence, machine learning, and data analytics to enhance underwriting processes, streamline management of online insurance claims, and deliver personalized customer experiences. Strategic partnerships between traditional insurers and insurtech firms have become commonplace, fostering innovation while expanding market reach. Digital platforms are revolutionizing distribution channels, with companies investing heavily in mobile applications and user-friendly interfaces to capture the growing tech-savvy consumer base. The industry is seeing a surge in micro-insurance products and specialized coverage options, particularly targeting underserved segments and rural markets. Operational agility has become paramount, with firms adopting cloud technologies and automated solutions to enhance efficiency and reduce turnaround times.
Dynamic Market Structure Drives Competitive Evolution
The online insurance market in India exhibits a moderately fragmented structure, characterized by a mix of established traditional insurers transitioning to digital platforms and emerging insurtech startups. Traditional insurance giants leverage their extensive experience and robust financial backing to maintain market presence, while innovative insurtech firms disrupt the space with technology-driven solutions and customer-centric approaches. The market witnesses active participation from both domestic players with deep local market understanding and global insurance conglomerates bringing international expertise and best practices.
The industry is experiencing considerable consolidation through strategic acquisitions and partnerships, particularly between established insurers and technology-focused startups. These collaborations aim to bridge the gap between traditional insurance expertise and digital innovation capabilities. Market dynamics are further shaped by the entry of non-traditional players, including e-commerce platforms and fintech companies, who are integrating insurance offerings into their existing digital ecosystems. The competitive landscape is continuously evolving with firms focusing on building comprehensive digital insurance platforms that can serve as one-stop solutions for various insurance needs.
Innovation and Customer Experience Drive Success
Success in the online insurance market increasingly depends on firms' ability to leverage technology for enhanced customer experiences while maintaining operational efficiency. Incumbents must focus on digital transformation initiatives, investing in advanced analytics capabilities and automated processes to streamline operations and improve risk assessment accuracy. Companies need to develop robust digital infrastructure supporting seamless multi-channel experiences while ensuring data security and regulatory compliance. Building strong brand recognition through targeted digital marketing strategies and maintaining transparency in pricing and policy terms has become crucial for market success.
For contenders aiming to gain market share, differentiation through specialized product offerings and innovative service delivery models is essential. This includes developing niche insurance products targeting specific customer segments and leveraging partnerships with online insurance aggregator platforms to expand distribution reach. Success factors also include the ability to maintain cost-effective operations while investing in customer education and engagement initiatives. Companies must navigate the evolving regulatory landscape, particularly regarding digital transactions and data protection, while building scalable technology infrastructure that can adapt to changing market demands and customer preferences. Additionally, the role of online insurance broker platforms is becoming increasingly significant in reaching diverse customer bases and facilitating easier access to various insurance products.
India Online Insurance Market Leaders
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United India Insurance Company Limited
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Life Insurance Corporation of India
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Max Life Insurance Company
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Bajaj Allianz General Insurance Co
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The New India Assurance Co. Ltd
- *Disclaimer: Major Players sorted in no particular order

India Online Insurance Market News
- In August 2023, Axis Bank announced its intention to acquire the 7% stake in Max Life Insurance. Currently, Axis Bank, Axis Securities, and Axis Capital collectively hold a significant 12.02 % stake in Max Life. With the acquisition of the additional 7% stake, the total holdings of Axis Entities in Max Life will increase to slightly over 19.02%.
- In October 2022, Exide Life Insurance Co. merged with HDFC Life Insurance Co., wherein it concluded the merger of Exide Life, marking the completion of the first-ever merger and acquisition (M&A) transaction in the Indian life insurance sector.
India Online Insurance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Increase in Internet Penetration and Smartphone Usage
- 4.2.2 Rise in Convenience and Accessibility of Purchasing Insurance
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4.3 Market Restraints
- 4.3.1 Lack of Personalized Advice and Support
- 4.3.2 Complex and Costly for Online Insurance
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4.4 Market Opportunities
- 4.4.1 Demand for Customized Insurance Products
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products and Services
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Insights on the Regulatory Landscape for the Online Insurance Market in India
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Life Insurance
- 5.1.2 Motor Insurance
- 5.1.3 Health Insurance
- 5.1.4 Other Insurances
6. COMPETITIVE LANDSCAPE
- 6.1 Market Competition Overview
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6.2 Company Profiles
- 6.2.1 Acko Insurance
- 6.2.2 Coverfox Insurance Broking Company
- 6.2.3 Go Digit General Insurance Limited
- 6.2.4 Insurance Dekho (Girnar Insurance Brokers Pvt. Ltd.)
- 6.2.5 Kenko Health
- 6.2.6 Plum Benefits Insurance Brokers Pvt. Ltd.
- 6.2.7 Policy Bazaar
- 6.2.8 RenewBuy (D2C Consulting Services Private Limited)
- 6.2.9 SecureNow Insurance Broker Pvt. Ltd.
- 6.2.10 Turtlemint Insurance Broking Services Pvt. Ltd.*
- *List Not Exhaustive
7. MARKET FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
India Online Insurance Industry Segmentation
Online insurance, also known as digital insurance or e-insurance, refers to buying insurance policies through online channels, typically via the internet or mobile apps. The Indian online insurance market, by type, includes life insurance, motor insurance, health insurance, and other insurance. The report offers market size and forecasts for the Online Insurance Market in India in value (USD) for all the above segments.
Type | Life Insurance |
Motor Insurance | |
Health Insurance | |
Other Insurances |
India Online Insurance Market Research FAQs
How big is the Online Insurance Market In India Market?
The Online Insurance Market In India Market size is expected to reach USD 2.09 billion in 2025 and grow at a CAGR of 12.20% to reach USD 3.71 billion by 2030.
What is the current Online Insurance Market In India Market size?
In 2025, the Online Insurance Market In India Market size is expected to reach USD 2.09 billion.
Who are the key players in Online Insurance Market In India Market?
United India Insurance Company Limited, Life Insurance Corporation of India, Max Life Insurance Company, Bajaj Allianz General Insurance Co and The New India Assurance Co. Ltd are the major companies operating in the Online Insurance Market In India Market.
What years does this Online Insurance Market In India Market cover, and what was the market size in 2024?
In 2024, the Online Insurance Market In India Market size was estimated at USD 1.84 billion. The report covers the Online Insurance Market In India Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Online Insurance Market In India Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Online Insurance Market In India Research
Mordor Intelligence provides a comprehensive analysis of the rapidly evolving insurtech landscape. We specialize in digital insurance and einsurance trends across India. Our extensive research covers the complete spectrum of online insurance segments. This includes online auto insurance, online life insurance, online health insurance, and online travel insurance sectors. The report examines the transformation through insurance digitalization and emerging digital insurance solutions. It provides detailed insights into online insurance broker networks and digital insurance platform implementations.
Stakeholders benefit from our detailed analysis of online insurance policy frameworks and online property insurance developments. We pay particular attention to online insurance claims processing systems and online insurance premium structures. The report, available as an easy-to-download PDF, explores the evolution of virtual insurance services and internet insurance accessibility. Our research thoroughly examines online insurance aggregator systems and the distribution of digital insurance. It offers actionable insights for businesses navigating the digital transformation of insurance services. The comprehensive analysis includes an evaluation of emerging digital insurance solutions and technological advancements shaping the future of insurance delivery in India.