With the Union Budget 2025 less than a week away, Insurtech startups and industry leaders are voicing their expectations for reforms that could enhance insurance accessibility, affordability, and innovation.
The chairman and group CEO of PB Fintech, stressed the need for a holistic approach to achieving “Insurance For All” by 2047.
“Bridging the insurance gap requires collaboration between the government, public sector, and private enterprises,” he said. “Further tax relief and exemptions on health and life insurance premiums would encourage more households to prioritise financial protection and long-term savings.”
He also called for a re-evaluation of the goods and services (GST) rate on insurance premiums and suggested revisiting the limits under Sections 80C and 80D to incentivise insurance adoption.
The CFO of InsuranceDekho, urged the government to address affordability challenges. “Reducing the GST on health insurance premiums and increasing the deduction limit under Section 80D to Rs 50,000 for individuals and Rs 1,00,000 for senior citizens can ensure that more families benefit from financial protection,” he said.
He also emphasised the need for separate tax concessions for life insurance premiums and reforms to attract investments while aligning India’s framework with global standards.
Focus on technology and digital infrastructure
The government’s emphasis on digital infrastructure is crucial for Insurtech startups, said he CEO and co-founder of CoverYou, an aggregator platform for indemnity insurance for doctors.
“The rapid advancement of technology has transformed the healthcare sector, and there is a growing need for comprehensive insurance solutions. Enhanced digital infrastructure and awareness initiatives will enable healthcare providers to make informed decisions to protect their practices and patients,” he said.
He CEO and co-founder of Bimapay Finsure, a lending service provider that facilitates personal loans for insurance premium payments, echoed the need for digital connectivity, particularly in rural areas. “Mobile penetration and affordable internet connectivity in underserved regions are essential to reaching neglected populations with insurance products,” he said. “Tax breaks or financial incentives for adopting new technologies could spur innovation in the Insurtech space.”
The role of data analytics and artificial intelligence in revolutionising the insurance landscape was also highlighted by him. “Government incentives for AI-powered Insurtech solutions could improve fraud detection, risk assessment, and customised insurance products,” he said.
Cybersecurity remains a concern. “With the shift to digital platforms, protecting customer data is crucial. Budget support for advanced cybersecurity measures will ensure trust in digital insurance services,” he said.
The Managing Director at Lockton India, called for targeted tax incentives for corporate entities to encourage the adoption of health insurance for employees. “This could strengthen the nation’s economic resilience and support universal coverage goals,” he said.
