Market Size of Online Insurance Industry In India
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.86 Billion |
| Market Size (2029) | USD 3.31 Billion |
| CAGR (2024 - 2029) | 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 1.86 billion in 2024 to USD 3.31 billion by 2029, at a CAGR of 12.20% during the forecast period (2024-2029).
As internet usage continues to rise in India, people are becoming more comfortable with online transactions, leading to a surge in the country's e-commerce sector. The trend is also evident in the insurance industry, with many people purchasing insurance online. Online insurance offers several benefits, driving its growth, including convenience and a wide range of policy options.
Increased internet and mobile usage influence customer preferences, as more people research products online before purchasing. While traditional channels like agencies and third-party distribution still dominate the market, online channels are becoming increasingly popular for purchasing insurance. Research indicates that online customers are often well-informed about their insurance needs and make informed decisions.
The COVID-19 has accelerated the shift towards digital operations in the insurance industry. Lockdowns and social distancing measures have forced insurance companies to rely heavily on their digital infrastructure for selling policies and processing claims. This increased reliance on digital tools has led to greater awareness among the public about the importance of insurance, particularly health insurance, leading to a significant increase in health insurance sales post-COVID-19.
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 |
Online Insurance Market In India Size Summary
The online insurance market in India is experiencing significant growth, driven by the increasing internet and mobile usage, which has shifted consumer preferences towards digital channels. As more individuals become comfortable with online transactions, the insurance sector is witnessing a surge in online policy purchases. This shift is further accelerated by the COVID-19 pandemic, which forced insurance companies to enhance their digital infrastructure, leading to greater public awareness about the importance of insurance, particularly health coverage. The convenience and variety of options available through online platforms are key factors contributing to the market's expansion, making insurance more accessible to a broader audience.
The Indian online insurance market is moderately fragmented, with numerous players leveraging digital platforms to offer insurance products and services. Health insurance dominates this market segment, fueled by rising healthcare costs and increased awareness of its benefits. Competitive pricing and government initiatives, such as the 'Ayushman Bharat PMJAY SEHAT' scheme, further enhance the attractiveness of health insurance. The market is also witnessing strategic movements, such as Axis Bank's acquisition of a stake in Max Life Insurance and the merger of Exide Life Insurance with HDFC Life Insurance, indicating a dynamic landscape with potential for further consolidation and growth.
Online Insurance Market In India Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increase in Internet Penetration and Smartphone Usage
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1.2.2 Rise in Convenience and Accessibility of Purchasing Insurance
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1.3 Market Restraints
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1.3.1 Lack of Personalized Advice and Support
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1.3.2 Complex and Costly for Online Insurance
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1.4 Market Opportunities
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1.4.1 Demand for Customized Insurance Products
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products and Services
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1.5.5 Intensity of Competitive Rivalry
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1.6 Insights on the Regulatory Landscape for the Online Insurance Market in India
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Life Insurance
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2.1.2 Motor Insurance
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2.1.3 Health Insurance
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2.1.4 Other Insurances
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Online Insurance Market In India Market Size FAQs
How big is the Online Insurance Market In India Market?
The Online Insurance Market In India Market size is expected to reach USD 1.86 billion in 2024 and grow at a CAGR of 12.20% to reach USD 3.31 billion by 2029.
What is the current Online Insurance Market In India Market size?
In 2024, the Online Insurance Market In India Market size is expected to reach USD 1.86 billion.
