Insurers to double down on tech, rural expansion for growth in '25

Industry will also focus on strengthening distribution networks and human capital

- AATHIRA VARIER

The Indian insurance industry is set to focus on customer-centric technological adoption and expansion into rural areas to drive growth in 2025. These initiatives are planned amid anticipation of policy-level changes, including potential increases in foreign direct investment (FDI), amendments to insurance regulations, and revisions in goods and services tax (GST) rates, industry insiders said.

The much-awaited launch of the Bima Sugam is also expected this year.

"Insurers will prioritize digital transformation by adopting cutting-edge tools like Generative AI (Gen AI) and machine learning (ML) to enhance underwriting, claims processing, and customer engagement; proactive support systems will replace reactive models, ensuring seamless customer interactions," said Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance.

Apart from technology, the industry insiders said the future growth of the sector will depend on the ability of insurers to penetrate the rural areas.