SME Insurance Market Trends

SME Insurance Market Trends

SME insurance is witnessing significant technological advancements. Many manual insurance tasks are automated using technology. Streamlining data collection using online apps and connecting with accounting software alleviates administrative responsibilities for SME. Algorithms use data to assess risks and calculate rates effectively, resulting in rapid policy approvals and cheaper administrative expenses for insurers.
 

Online systems enable SME to file claims online, with AI-powered solutions facilitating faster claim assessment and reimbursement. These improvements result in cost savings for insurers, which may be passed on to SME as lower premiums, making insurance more affordable and stimulating market development. Technology provides insurers with superior data analytics capabilities. Machine Learning (ML) algorithms can detect developing hazards and anticipate losses more accurately.
 

For instance, in June 2023, Kotak General Insurance partnered with actyv.ai to offer bite-sized insurance products to Micro, Small, and Medium Enterprises (MSME). This partnership aims to provide insurance solutions to nearly one lakh supply chain partner ecosystems, enabling them to prioritize growth while minimizing concerns related to business risks.