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Mumbai, July 17, 2025: India’s insurance industry is at a crucial turning point and on the verge of digital transformation. The sector is poised for disruption and growth, with total insurance premiums surpassing ₹11.19 trillion in FY24 and digital channels accounting for an increasing share of new policies.
A joint rport titled “Rimagining Insurance: India’s Leap into the Future of Insurance,” released by leading fintech and digital transformation advisory firm The Digital Fifth in collaboration with Perfios, India’s largest B2B SaaS TechFin, highlights these transformative trends. It also forecasts that private funding in the Insurtech industry is expected to exceed $1 billion in the next 12 months.
The report examines how insurers leverage technology to build agile, inclusive, and future-ready business models. It also highlights the shift from a traditional agent-led model to a platform-driven, modular, and customer-first ecosystem.
The report identifies five key shifts: insurer-led tech investments, journey-level digital transformation, public infrastructure and government support, dynamic distribution and data, and regulation. It combines deep industry knowledge and insights from senior stakeholders across insurers, Insurtech investors, and technology enablers.
It maps the present and future of Indian insurance, framing key technology shifts, regulatory developments, and strategic imperatives.
“India’s insurance sector is on the brink of a transformative shift. With onboarding expected to be 80% automated in life insurance and over 90% of retail non-life claims moving toward real-time processing, we are entering a phase where efficiency and trust go hand in hand,” said Sameer Singh Jaini, Founder & CEO, The Digital Fifth.
He added, “This evolution is also mirrored in investor sentiment, where projected funding of around $1 billion in the coming year signals strong belief in the sector’s long-term potential. What is most promising is the parallel investment in core system modernization, smarter underwriting, and digital-first claims journeys. These foundational changes will elevate customer experience and redefine how insurers create, deliver, and sustain value in a dynamic ecosystem.”
“As this report highlights, India’s Insurtech sector is poised for significant growth, yet digital sales represent only 0.67% of new life insurance business,” said Prasad Krishnamorthy, Head of Insurtech at Perfios. “This gap underscores a tremendous opportunity. The Insurance Operating System at Perfios, which already powers 40% of cashless health claims, is enabling insurers to achieve up to 200% improvement in process efficiency, while also identifying fraud, wastage, and abuse. This report underscores the critical need for modernization that encompasses technology, trust, speed, and personalization, especially as we see a sharp rise in self-onboarding and DIY insurance journeys,” he added.
While India’s insurance sector is evolving rapidly, significant structural challenges continue to hold back its full potential. Insurance penetration dropped to 3.7% in FY24, with life insurance at just 2.7%—well below the global average of ~7%, signaling an enormous protection gap, especially in health, life, and micro-insurance categories. Initiatives like NHCX (National Health Claims Exchange) and the upcoming Bima Sugam platform by the Government and IRDAI are laying robust digital rails for insurance innovation. The Digital Personal Data Protection Act (DPDPA) is expected to reshape how insurers manage customer data and design consent-based experiences.
🔗 Access the full report here: https://perfios.ai/india-insurance-summit-report
About Perfios: http://perfios.ai/
Founded in 2008, Perfios is a global B2B SaaS company serving the Banking, Financial Services, and Insurance industry in 18 countries, empowering 1000+ financial institutions. Through their pioneering software platforms and products, Perfios helps financial institutions take big leaps by shaping their origination, onboarding, decisioning, underwriting, and monitoring processes at scale and speed. Perfios delivers 8.2 billion data points to banks and financial institutions every year to facilitate faster decisioning and significantly accelerates access to credit and financial services for their clients’ customers. Headquartered in Bangalore, with offices worldwide and with 75+ products and platforms, and over 500+ APIs, Perfios provides clients with a confident and robust end-to-end tech platform.
About The Digital Fifth: https://thedigitalfifth.com/
Set up in 2017, The Digital Fifth has evolved into a market leader in digital transformation for the BFSI segment, with a vast portfolio across strategy consulting, digital advisory services, digital program management, technology strategy and advisory, risk and compliance, and corporate training. Headquartered in Mumbai, it services banks, non-banking financial companies, fintech companies, and insurance companies.