What happened
Press Information Bureau says technology is reshaping term life insurance in India and helping reduce the affordability gap. It argues that artificial intelligence-led underwriting and digital data can make policy assessment faster, cheaper, and more precise.
Press Information Bureau links India’s underinsurance problem to four practical frictions: affordability concerns, underwriting delays, paperwork burdens, and the perception that buying term insurance is difficult.
How digital underwriting works
Insurers are increasingly using digital inputs such as medical records, prescription history, behavioural signals, e-KYC, the Account Aggregator framework, and digital health records to assess risk more accurately.
Better risk assessment reduces uncertainty, cuts servicing and acquisition costs, and can improve pricing for low-risk customers.
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