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What Effect has Digitisation had on India's Motorcycle Insurance Market?

By Juhi Walia
28 September 2022, 1:41 PM

Digital platforms provide bike insurance buyers with more choices, personalised insurance policies, and a seamless insurance experience. These policies are more affordable and transparent than their conventional counterparts, which has helped India's two-wheeler insurance market grow.

Online two-wheeler insurance has reshaped the industry, benefiting customers and insurance providers. Customers benefit from fast and convenient service, transparent product offerings, and super-fast claims procedures. And with digitalisation, insurers can build their client base, cut expenses, and improve benefits.

The two-wheeler insurance sector is now going through a digital transition, resulting in several shifts. Among them include the elimination of intermediaries, the simplification of the comparison process, and the enhancement of operational efficacy.

Digital Transformation of India's Two-wheeler Insurance

Digitalisation is transforming the entire insurance industry, and bike insurance is no exception. Insurers are incorporating new technologies such as AI, machine learning, robotic process automation, telematics, blockchain, and other futuristic technologies into their business models. With these technologies, insurers can make smarter decisions about pricing policies and how much to charge.

The digital revolution is also changing customer service expectations. Consumers expect a seamless digital experience across all touchpoints and channels. Moreover, push-selling agents have become an annoyance to many consumers. Many consumers cannot even explore the benefits of insurance, as they feel pushed into buying it before even considering it.

Innovation is critical to the success of insurance companies. Insurers need to recognise what drives value and then lead technological trends. To compete for market share, insurers must become more innovative and create better products and services. Without innovation, customers will move to their competitors. In addition, insurers can also see whether business owners follow necessary safety measures.

The primary repercussions that the digital revolution has had on the two-wheeler insurance market in India are - 

Removal of Intermediaries

Digital transformation is transforming the entire insurance industry in India, and the two-wheeler insurance sector is no exception. Insurers are incorporating technology and futuristic tools such as artificial intelligence, machine learning, robotic process automation, telematics, blockchain, and augmented reality to revamp operations and remain relevant.

Using digital technologies to sell insurance has also reduced operational and distribution costs. Online policies, for example, eliminate the need for third-party intermediaries. Unlike traditional policies, digital platforms cut overhead costs and have made two-wheeler insurance more affordable than ever. Traditional pricing strategies rely on assumptions about rider risks.

For example, insurers often considered younger riders higher risks because they assumed they would drive more recklessly and be involved in more accidents.

Digital platforms also allowed insurers to offer personalised policies at lower prices. They can also provide more products and offer an integrated insurance experience. Digital platforms also allow insurers to reach out to remote locations where physical branches are impossible. As a result, the penetration of two-wheeler insurance is increasing.

The digital environment has allowed insurers to deliver their two-wheeler insurance products and services online. This has cut operational costs and allowed insurers to pass the savings on to customers through low-cost insurance policies. Online insurance also makes it easier to track claims and offers a one-stop shop for insurance needs. 

Comparison Made Easier

Digital transformation has dramatically impacted the two-wheeler insurance sector in India. It has simplified the claims process, made it more efficient, and empowered consumers with more information about their insurance policies.

As the world becomes more connected, customers' expectations are constantly evolving. They demand a digital experience that meets their needs. As a result, insurers are no longer competing against each other but an expanding number of competitors and digital experiences.

To compete in this environment, insurers must adapt to meet the needs of their customers. While some of these changes are negative, the overall impact is positive.

  • More convenient: The digital transformation of the insurance sector has made purchasing and renewing insurance policies more accessible and convenient for customers. Insurance companies can now make their policy offerings available online, and customers can view them from the comfort of their homes. This eliminates the need for agents, reducing policies' overall cost.
  • Flexible and Efficient: In addition to simplifying the insurance process, digital transformation is also making insurance companies more flexible and efficient. Innovations in technology and predictive analytics are enhancing customer experience. Insurers can now assist customers and gather data from wearables devices. This data enables insurers to make informed decisions.

Using digital technologies, insurers have made the process of buying and renewing a two-wheeler insurance policy fast and easy. By using online insurance, customers can compare bike insurance policies and make informed decisions. They can also keep track of the status of their insurance claims. 

Increased Efficiency

In India, the two-wheeler is an essential mode of transportation for urban and rural areas. It is cheap and convenient and occupies less space than a car. The Indian two-wheeler market is among the largest in the world. Bike owners must obtain insurance coverage under the Motor Vehicles Act, 1988. By purchasing insurance, bike owners can avoid financial ruin in case of mishaps.

Buying a bike insurance policy is not difficult and can be done online. With just a few clicks, the customer can quickly get all the details they require about the policy. This enables them to make an informed decision without any intermediary. Digital transformation has made buying bike insurance in India much more accessible.

Digital transformation is transforming the insurance industry. The arrival of new technologies has hastened this process. Insurers unprepared for digital transformation may find themselves in a difficult position. Insurers must be able to respond quickly to the changes resulting from digital transformation.

Insurers can now provide insurance policies online and save on operating costs. This allows insurers to pass on savings to customers through lower premiums and greater convenience. Customers can also track their two-wheeler insurance claims in one place.

Smoother Claim Settlement

Digitalisation is changing the way we buy, sell, and bike claim insurance. It has simplified the process, reduced the need for intermediaries, and empowered customers to make informed decisions. The two-wheeler insurance industry is no exception to this trend. Government regulations require new two-wheeler owners to have insurance.

Despite the challenges associated with making insurance products more accessible to consumers, digitisation has brought about several positive impacts on the two-wheeler insurance industry in India. Digital transformation is transforming the insurance industry and customer experience.

Two-wheeler insurance companies now offer their entire product offerings online, making the process fast and hassle-free. Online insurance has also eliminated the need for intermediaries. Furthermore, customers can purchase two-wheeler insurance policies with one click, eliminating paperwork and inspection.


Bike insurance online shopping is a great way to save money and find the best insurance coverage. Many insurance companies offer this bike insurance policy service, which is also free. Online quotes are free because there are no markups or agency fees involved.

Consumers can also save quotes for later comparison with the best bike insurance company. The most crucial aspect of online motor insurance shopping is that the process is easy and secure.

Read more -


1. What changes do you expect to see due to digitalisation?

With cutting-edge technology such as Artificial Intelligence (AI), deep learning, and predictive analytics, the insurance industry has saved money on operations. As a result of the simplicity with which claims may now be handled via a mobile app, insurers have claimed reduced time spent "insurance writing."

2. How is the digital age affecting the insurance industry?

The first and most evident result of this transition is the savings that digitalisation in the insurance market allows. Artificial Intelligence (AI) and technology applications such as predictive analysis and machine learning are the key drivers of the insurance industry's rapid expansion.

3. What exactly does it mean to "digitise" insurance?

Insurance companies are spending extensively on upgrading their IT systems because of the changes in consumer behaviour, demands, and expectations brought about by digitisation. As part of a more significant movement toward digitisation, insurers will soon be able to deploy high-quality, end-to-end robotic operations.

4. In what ways may technology help medical providers?

With specialised data sets, insurers may enhance numerous elements of their insurance information technology, including underwriting; this can lead to more exact risk projections. Reduce the frequency of fraud while increasing the efficiency with which valid claims are handled. Making clients happy and providing them with a one-of-a-kind experience is essential to effective marketing.a

5. Is machine learning valuable in the insurance industry?

Insurers use deep learning to anticipate premiums and losses associated with policies. Insurance firms can better use their inspectors' time due to early risk detection and gain a significant competitive advantage.

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