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India, 19 November 2025: Sahamati, the industry alliance of the Account Aggregator ecosystem, and the India InsurTech Association (IIA), with support from KPMG in India, have launched a report titled “From Consent to Cover: How the Account Aggregator Framework Can Unlock Value in the Insurance Industry.” This report presents a comprehensive analysis of how the Account Aggregator (AA) framework can address the structural frictions that have long constrained the growth of India’s insurance sector.
India’s identity and payments infrastructure has established the foundations of financial inclusion. Yet, financial services that require financial underwriting and assessment of users remain out of reach for a significant share of Indians, particularly gig workers, self-employed individuals, and employees in the informal economy. These segments have been traditionally excluded from insurance coverage, due to lack of formal proof of employment, income, and tax returns.
Findings from the Report
By enabling customer segments who have increasingly become data-rich, to leverage their digital financial footprint, scattered across multiple accounts, with explicit, informed consent, the AA framework makes these underserved customers newly insurable. The report estimates that in coming years, the ecosystem will unlock five major benefits for the insurance industry:
Market expansion – Potential to bring 33–40 crore underserved customers into the insurable pool
Premium growth – Opportunity to unlock ₹1 lakh crore in new premium income
Operational efficiency – Shortening underwriting cycles from days to minutes, saving ₹218 crore annually
Fraud mitigation – Enabling Saving of up to 8% through early detection and source-based verification
Persistency gains – Potential to reduce 13-month lapse rates by 30%
Shalini Gupta, Chief Policy and Advocacy Officer, Sahamati, said “The AA framework offers the insurance industry a practical way to strengthen financial underwriting, policy servicing, and product innovation. Throughout this report, we have focused on how these capabilities can be applied with the customer at the centre. We see this as an opportunity in the financial services industry to foster the next wave of inclusion and innovation in insurance.”
Prerak Sethi, India InsurTech Association (IIA), said “We launched this report to highlight how consent-based data can fundamentally reshape the way insurers and insurTechs serve people. The Account Aggregator framework is built on trust and transparency, and it enables the industry to design products that truly understand and serve the customer.”
Sharing his views, Kailash Mittal, Partner – FRM and Head of Insurance, KPMG in India, said, “The Account Aggregator framework will be a real game changer for the insurance industry. It allows risk to be priced more precisely, persistency to be predicted more reliably, and fraud to be managed proactively. Moreover, AA reduces information asymmetry and strengthens risk management across insurance operations. It’s more than just efficiency, it’s about reshaping insurance to make it more accessible, transparent, and sustainable, and taking us closer to the vision of Insurance for All by 2047.”
Applications of AA in the Insurance Industry
The AA framework enables insurers to access verified financial data in real time with customer consent, replacing manual document collection. This allows customers to have a seamless, paperless experience with full control over their data. The report highlights several live applications demonstrating how AA is already transforming the insurance industry in India, such as:
Financial underwriting – makes underwriting faster, more accurate, and less dependent on manual documents or customer declarations.
Insurance planning – assess customer financial profiles and recommend right-fit products and tailor coverage to real financial capacity and needs.
Policy servicing – from renewals to claims verification and early fraud detection, insurers can deliver smoother servicing, cleaner claims, and more proactive customer engagement.
Early deployments in financial underwriting for life insurance have demonstrated turnaround times dropping from days to minutes and rising customer adoption as convenience and trust improve.
Building on these early gains, the report has laid down the potential opportunity and a set of organizational recommendations and policy recommendations. The organizational recommendations highlight the need to strengthen internal readiness and build smoother, trust-led customer journeys, while the policy recommendations call for expanding the financial information universe and reducing authentication friction.
For a comprehensive view of the analysis, insights, and recommendations presented in this study, the full report is available here.
