ONLINE INSURANCE MARKET IN INDIA - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is projected to reach approximately INR 220 billion by 2024.

Market Snapshot

Market size
Study Period: 2016 - 2026
Base Year: 2021

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Market Overview

The online insurance market in India (henceforth, referred to as the “market studied”) is expected to reach a value of approximately INR 220 billion by 2024.

  • Online life insurance sales are expected to grow at approximately 5% of the individual annualized new business premium by 2020, whereas the non-life insurance sales are expected to grow at more than 15% of non-life retail insurance business. This growth trend, expected to grow stronger in future, is primarily attributed to the increase in smart phone usage and internet penetration.
  • The increasing internet and mobile usage has a major influence on changing customer preferences, as the customers are getting used to researching products online. While the traditional model of buying insurance is still the most sought in India, it was found that online research on life insurance has been observing an increasing trend. 
  • Though the traditional channels, like agency and third-party distribution, have a market share of more than 80%, the online distribution channel is evolving as the preferred mode of purchasing insurance. Additionally, studies show that a typical online customer is well aware of his/her needs and has been taking informed decisions.


Scope of the Report

The report covers a detailed analysis of the online insurance market in India, which includes an assessment of the emerging trends by segments and significant changes in market dynamics and market overview.

Life Insurance
Motor Insurance
Health Insurance
Other Insurances

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Key Market Trends

Increasing Internet Userbase in India

  • In 2018, India had more than 480 million internet users, and the figure is projected to cross 650 million in 2024. India is the second-largest online market, worldwide. Majority of the internet users in India are mobile phone internet users who take advantage of cheap alternatives rather than opting for expensive landline connections that require desktop PCs and infrastructure.
  • According to the ICUBE 2018 report, which tracks the digital adoption and usage trends in India, the number of internet users in India registered an annual growth of 18% and was estimated at 566 million (as of December 2018), with a 40% overall internet penetration.
  • Increased availability of bandwidth, cheap data plans, and increased awareness driven by government programs seem to have rapidly bridged the digital gap between urban and rural India.
  • Consequently, the internet penetration in rural India increased from 9% in 2015 to 25% in 2018.


Trend 1

High Focus on Digitalization in India to Drive Online Insurance Sales

  • Over the past few years, several initiatives were taken by the Indian government for the digital transformation of the country. Digitalization has had its impact on several industries in the country, insurance being one of them.
  • In India, the digital influence on insurance sales is 13% for life insurance, 15% for health insurance, 9% for motor insurance, and 21% for travel insurance.
  • Approximately, INR 80 billion of new insurance sales are digitally influenced. It is estimated that the digital influence on insurance sales may rise to 50% for life insurance and 75% for non-life insurance, by 2020.
  • The number of UPI transactions in the country increased by more than 90% from 30 million transactions in September 2017 to 405 million transactions in September 2018.
  • This changing behavior of the consumers in India toward online transactions is expected to have a significant impact on the sales of online insurance policies.
  • Additionally, the reduced cost associated with buying an insurance through online channel and the availability of a wide range of product information for the comparison of policies are expected to attract more customers toward buying insurance policies through the online channel.


Trend 2

Competitive Landscape

The report covers major players operating in the online insurance market in India. As of now, there are 35 general insurance companies and 24 life insurance companies operational in India. Online insurance is gaining traction among the consumers due to internet penetration and mobile phone usage. Hence, companies are increasing their focus on providing their insurance policies online, either directly to consumers or through web aggregators. As the online insurance sales are expected to account for more than 75% of the new policies over the next few years, the insurers are competing with each other to technologically upgrade their offerings.

Table of Contents

  1. 1. Introduction

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. Research Methodology

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. Executive Summary

  4. 4. Market Dynamics

    1. 4.1 Market Overview

    2. 4.2 Growth Drivers

    3. 4.3 Market Challenges

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Market Opportunities

    6. 4.6 Regulatory Environment in the Indian Insurance Industry

  5. 5. Market Segmentation

    1. 5.1 Type

      1. 5.1.1 Life Insurance

      2. 5.1.2 Motor Insurance

      3. 5.1.3 Health Insurance

      4. 5.1.4 Other Insurances

  6. 6. Competitive Landscape

    1. 6.1 Market Competition Overview

    2. 6.2 Company Profiles

      1. 6.2.1 The New India Assurance Co. Ltd

      2. 6.2.2 The Oriental Insurance Company Limited

      3. 6.2.3 United India Insurance Company Limited

      4. 6.2.4 ICICI Lombard General Insurance Company Limited

      5. 6.2.5 Bajaj Allianz General Insurance Company Limited

      6. 6.2.6 ICICI Prudential Life Insurance Co. Ltd

      7. 6.2.7 SBI Life Insurance Co. Ltd

      8. 6.2.8 HDFC Life Insurance Co. Ltd

      9. 6.2.9 Aditya Birla Sun Life Insurance Company Limited

      10. 6.2.10 Bharti AXA General Insurance Company Limited

  7. 7. Future of the Market

  8. 8. Disclaimer

**Subject to Availability

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Frequently Asked Questions

The India Online Insurance Market market is studied from 2016 - 2026.

The New India Assurance Co. Ltd, The Oriental Insurance Company Limited, United India Insurance Company Limited, ICICI Lombard General Insurance Company Limited, HDFC Life Insurance Co. Ltd are the major companies operating in India Online Insurance Market.

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