Thursday, September 29, 2022

Investment Opportunities In Indian Insurance Industry To Usher Next Phase Of Growth

* Current decade to observe India emerge as one of the largest insurance markets across the globe 

The Indian Venture & Alternate Capital Association (IVCA), the apex industry body for alternative assets, organized a sector exclusive forum to discuss - ‘Investing into India’s burgeoning Insurance Ecosystem’, in Bengaluru today. The forum saw many leading Private Equity, Venture Capital funds and Family Offices participate along with the Chairman of Insurance Regulatory and Development Authority (IRDAI) - Mr. Debasish Panda, gracing the occasion to highlight the opportunities in the insurance space in a fast-growing digital economy in India. 

“The rapid economic expansion, ably supported by digital infrastructure and innovation will play a defining role to make the insurance market in India as one of the largest across the globe.  The market size is estimated to reach USD 200Bn by FY '27 at the present growth rate however we have aspirational plans, and we expect the market to grow by leaps and bounds, and the contribution of venture capital, private equity and family offices in nation building is a step in the right direction. With the support of the ecosystem, the burgeoning Indian insurance sector gains additional capital source as well as help foster new products and solutions to overcome present challenges of affordability and accessibility,” said Debasish Panda, Chairman, IRDAI.  

Insurance penetration in India experienced an increase in momentum in recent years moving to 4.2% in FY21 from 3.76% in FY20.  Multiple reasons are cited for this development, specifically, ease of doing business, deployment of digital solutions by insurers, change in the attitude of consumers and their realization of financial security, evolution of products, including new regulatory framework regarding product approval and distribution by IRDAI. 

“With India today ranking 10th in the global life insurance market and ahead of China (at 2.4%) and UK (at 3%)#, we are suitably positioned to cater to the rising demand of younger and digital-first consumers emerging from smaller and newer geographies and across life and non-life” said Karthik Reddy, Chairperson, IVCA & Co-founder and Managing Partner, Blume Ventures. 

He further commented, “Customer experience, cost of distribution and product innovation are the top three areas of disruption for insurance companies. Thereby, the sector transformation has resulted in the introduction of innovative and tech-first products which solve issues of accessibility, cost-efficiency while elevating customer experience, prompting an unprecedented scale of behavioral change.” 

The event was powered by Sequoia Capital and Khaitan & Co. and saw participation from the following - Karthik Reddy (Chairperson, IVCA, Co-founder and Managing Partner, Blume Ventures), Rahul Garg (Partner, Premji Invest), Ganesh KC (President, Pratithi Investment), Divaspati Singh (Partner, Khaitan & Co.), Niren Patel (Partner, Khaitan & Co.), Shweta Rajpal Kohli (Chief Public Policy Officer, Sequoia Capital India & SE Asia), Ishaan Mittal (Managing Director, Sequoia Capital), Sandeep Kagzi (Principal, Warburg Pincus), Treasa Mathew (Director, Investments, Omidyar Network India), Sanjay Swamy (Managing Partner, Prime Ventures), Nithya Eswaran (Managing Director, Multiples Alternate Asset Management Pvt. Ltd.), Divya Sehgal (Partner, True North), and Rajat Tandon (President, IVCA). 

About IVCA – Indian Venture and Alternate Capital Association:

Indian Venture and Alternate Capital Association (IVCA) is a not-for-profit, apex industry body promoting the alternate capital industry and fostering a vibrant investing ecosystem in India. IVCA is committed to support the ecosystem by facilitating advocacy discussions with the Government, policymakers, and regulators, resulting in the rise of entrepreneurial activity, innovation and job creation in India and contributing towards the development of India as a leading fund management hub. 

IVCA members are the most active domestic and global VCs, PEs, funds for Infrastructure, Real Estate, Credit funds, Limited Partners, Family offices & Corporate VCs investing into startups of all stages, venture growth, buyout, special situations, credit, and venture debt. The membership is also extended to institutional investors, banks, angel networks groups, corporate advisors, accountants, lawyers, Govt. bodies, academic institutions and other service providers to the venture capital and private equity industry.  

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