Indian insurtech sector has mobilised USD 2.5 billion over the years and the industry is expected to attract more investment in the future as there are significant growth opportunities in the space, a report said on Wednesday.

According to Boston Consulting Group (BCG) and India InsurTech Association (IIA) report, India has about 150 insurtech companies, with 10 unicorns and "soonicorns" and over 45 "minicorns" with a 12 times increase in revenue over the past five years to reach USD 750 million.

Cumulative funding has surpassed USD 2.5 billion, bringing the total ecosystem valuation to over USD 13.6 billion, the report said.

While global insurtech funding has slowed down, the report said, APAC's insurtech sector has shown resilience.

Indian insurtech funding has followed the global trend of decline, but revenue has grown multifold, driven by the rapid expansion of larger Insurtechs, it said.

With a higher concentration of insurtechs focused on demand generation and distribution within the value chain, there is a significant opportunity to drive innovation in underwriting, claims and servicing, it said.

Insurtech revenue has grown multifold by 12 times over the last five years but, there are still significant opportunities in the space, it said.

Most of the insurtechs at scale are present in the aggregation and distribution legs of the value chain, with these accounting for over 80 per cent of the funding, it said.

"There is a substantial opportunity for insurtechs to leverage data and technology in underwriting and claims, which can play a critical role in the continued growth of the insurance industry," said Pallavi Malani, Managing Director and Partner, Lead - India Insurance Practice at BCG, and Co-author of the report.

Observing that a robust financial sector is essential and insurance can play a key role in making India a developed economy by 2047.

Although India has made significant progress, increasing insurance penetration still remains a priority, particularly in health insurance with 45 per cent of medical spend still being out of pocket, the report said.

Multiple macroeconomic tailwinds are already driving growth in the industry, it said.

The goal is to achieve 100 per cent coverage for all citizens and reduce out-of-pocket medical expenses to less than 10 per cent by 2047.

India envisions becoming the world's third-largest insurance market, with over 10 companies in the global top 50 and more than 100 insurtechs operating at scale.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)