The following text field filters the results that follow as you type.
With 40% of the world’s real-time digital financial transactions happening in India, the country has successfully taken up this challenge and has shown innovation prowess within the global finance sector.
Published on September 28, 2022
Markel International, Asia
Priyesh Pradhan, underwriter of professional and financial risks at Markel India, provides an overview on India’s economic outlook and how Markel’s fintech product will help to support the development of fintech companies across the country.
Over the years, India’s economy has experienced and overcome many economic challenges; from the slow rate of capital formation to the issues around confining compliance and regulations. In 2022, India’s economy currently stands at USD $3.3tn and aspires to be an economy worth USD $5tn by 2025. This would make India one of the world’s fastest-growing economies over the coming years, while others slowdown or even go into a recession.
In an address to the nation, India’s Prime Minister highlighted the importance of fintech to the country’s financial ecosystem as the country celebrated its 75th Independence Day in August this year.
Fintech is expected to contribute almost 25% ($1.3tn) to the country’s total target economy by 2025. With 40% of the world’s real-time digital financial transactions happening in India, the country has successfully taken up this challenge and has shown innovation prowess within the global finance sector.
Overcoming challenges to support growth of fintech
The development of fintech in India has seen many challenges, including issues with internet accessibility, low penetration and acceptance of financial services, adaptation and usage of technology, dependency on traditional banking, as well as a restrictive regulatory and compliance framework. To overcome these challenges, the government has introduced a number of initiatives such as: Unified Payments Interface (UPI), Digital India, Fintech Revolution, Start Up India, and the Non-Banking Financial Company Peer-to-Peer (NBFC P2P) lending platform, which have helped in creating a favourable business ecosystem for developing fintech companies in India.
The Indian fintech industry has overcome many of the initial challenges and is enjoying steady growth. Some of the contributing factors that have helped to strengthen the country’s economy include: real-time payment processing, advanced insurance tech offerings, neo banking, availability of easy lending platforms, ease of investment advisory through a digital gateway, favourable regulations, and a steady shift in the mindset of masses towards technology and availability of different financial payment avenues (e.g., mobile payments and digital wallets).
India is recognised as a strong fintech hub globally, and as the Indian entrepreneurial landscape continues to evolve, more fintech-led businesses will enter this industry segment; meaning more funding from investors.
An unrivalled solution for the Indian Market.
With such huge potential for fintech growth in India, this industry has to be equally compensated with specialist insurance offerings that address the prominent risk factors in this space (e.g., data liability, civil liability, and crisis management), so that businesses are protected and can continue operating as normal.
At Markel India, our expert underwriters understand the changing economic outlook in India. And in collaboration with Markel’s London team, who have been market-leaders in fintech insurance since launching the first specialist policy in 2016, we have introduced a niche insurance solution.
Using our deep understanding of local considerations, the policy provides insurance coverage for some of the most common and significant issues impacting fintech firms, which will support the development of fintech in India.
Before this product’s inception, fintech companies had to take out separate insurance policies, which could leave a significant gap in the required coverage and potentially result in third party liability claims, as well as exposure to first party direct financial losses.
Markel’s fintech insurance policy provides cover for professional liability, management liability, crisis management expenses, theft related exposures, and technology risk exposures (including: network security, data security, and cyber).
As fintech firms seek to grow over the next five years, Markel’s fintech insurance provides the stability and freedom they need, so they can continue to contribute to India’s evolving and expanding economy.
For more information on Markel’s fintech insurance product, contact Priyesh.pradhan@markel.com
About Markel International:
Markel International is a division of Markel Group Inc, a US-based holding company trading on the New York Stock Exchange (NYSE: MKL). Markel International writes insurance and reinsurance business through six divisions and through offices across the UK, Europe, Canada, Latin America and Asia Pacific. Markel International’s insuring entities include Syndicate 3000, Markel International Insurance Company Limited, Markel Insurance SE., and Markel Resseguradora do Brasil S.A. Its UK national markets business also provides legal and professional fees insurance cover as well as legal and tax consultancy services.