NIA-IIA-Marsh Hackathon 2022

The review of India’s insurance protection gap is a crucial step at a time when our country’s Nat-Cat risk exposure is increasing exponentially due to climate change, and pandemics. Similarly, cyber risk exposures are also rising due to increasing digitization during the pandemic time. Insurance penetration has been lingering around 4%, which is significantly lower than the global average of 7.3 %. More critically, the insurance coverage gap is expanding across all lines of business. To close the protection gap, several activities must be undertaken collectively by all stakeholders, including the regulator, insurers, reinsurers, government, intermediaries, and customers, among others.

This hackathon is being organised to investigate various methods by which insurers, insurtech companies, intermediaries, and representatives from other sectors might collaborate to create an innovative risk solution to bridge the protection gap.

The following are the eligibility criteria for the event:

  1. The idea must provide an innovative solution for addressing the insurance protection gap in any of the lines of business described below in the problem statement.
  2. The idea may leverage innovative technology to solve the problem identified.
  3. There should be only one entry accepted from each team. All correspondences relating to this hackathon shall be communicated to the team leader only. 
  4. The following entities shall be eligible for participating in the hack:
    1. The team can comprise an individual professional or a registered company or firm.
    2. Companies, partnerships, and startups should hold a valid certificate of registration while applying.
    3. Individuals who are citizens of India OR
    4. Individuals from FATF compliant jurisdictions
  5. The participant’s application must be their original work or idea.
  6. Participants must ensure that the personal information provided upon registration online is true and accurate

While the insurance protection gap exists in all risk areas and must be closed for the country’s overall economic growth and security, the following six problem areas have been chosen for further investigation and development of innovative solutions.

  • Property Insurance
    The increasing insurance protection gap in property insurance, due to rising NatCat exposures due to climate change, is a critical issue to address immediately as the current NatCat protection gap is 90%, which is relatively high when compared to developed markets, where it is roughly 55% to 65%.

    Many individuals in India do not have home insurance, and a huge number of government and MSME assets also remain insufficiently protected. This contributes to a low insurance penetration in India. To close the protection gap, all stakeholders must work together. In order to protect important assets, solutions must be devised to improve the property insurance penetration ensuring adequate coverage equivalent to the amount of insurable property in the country.
  • Life Insurance 
    Life insurance protects the breadwinner’s life and his family’s life savings, which is an important safeguard that should be strengthened. The life insurance protection gap has widened to 93% because of rising mortality risk and volatility in financial market risks including inflation. Although life insurance penetration has improved to 3.2% since the pandemic, still it remains quite low as compared to the global average. As a result, increasing life insurance penetration, as well as density, is a crucial factor that must be investigated and addressed.
  • Health Insurance
    Extending health insurance/assurance coverage is a critical step in India’s effort to achieve Universal Health Coverage (UHC). In India, out-of-pocket expenses (OOP) account for around 62.6% of overall health expenditure. Furthermore, at least 30% of the population, or 40 crore people – called the “missing middle” – lack any financial protection for health, and this must be considered when developing and modernizing the country’s insurance infrastructure. As a result, a study of the healthcare gap from this perspective is required.
  • Crop Insurance 
    India is a global agricultural powerhouse. With agriculture providing a livelihood to 58% of India’s population, ensuring that farmers are resilient and can rebuild following crop failures is an utmost priority for the country. As the weather becomes more irregular and the environment gets harsher and more unpredictable, a comprehensive examination of risk mitigation strategies becomes necessary. As a result, studying the protection gap in Crop Insurance becomes extremely important.
  • Annuity and Pensions
    It has been found that annuity and pension products, as well as life and health insurance, have enormous restorative powers in reducing the economic and financial shocks that impair a household’s well-being. Factors such as rising life expectancy and a big workforce in unorganized industries with little or no pension provision necessitate devising strategies to close the protection gap. As a result, it’s critical to go into the nitty-gritty of the reasons behind the pension protection gap and come up with practical solutions to close it.
  • Cyber Insurance
    As a result of increasing technological adoption during this pandemic, the cyber risk exposures have gone up significantly across all industries and also individuals. However, the cyber insurance penetration is also currently quite low. Further, the current product offering is also limited leaving behind huge, unprotected entities and individuals. This calls for studying the cyber protection gap in-depth and developing innovative solutions to bridge the gap in cyber insurance.

 

Applications are invited in above areas, solving critical problems in relation to:

  1. Underwriting
  2. Pricing 
  3. Innovation in products
  4. Claims management
  5. Risk Monitoring
  6. Enhancing customers’ purchase journey
  7. Cost savings and efficiency in operations

Applicants are invited to innovate in different emerging technologies, such as blockchain, AI/ML, data analytics, telematics, usage-based insurance, parametric insurance (the list is non-exhaustive)

  1. Apply for the Hackathon at the webpage here: https://bit.ly/InsurtechHackathon22
  2. Applicants will be directed to a detailed application form that needs to be filled out and submitted.
  3. The detailed guidelines will be provided on the ‘application form’.
  4. Terms and conditions of the hackathon are available here:  https://bit.ly/TermsHackathon22
  5. Applications are open for a period between June 15, 2022 – July 31, 2022
  6. Application Process
    As part of the application process, you will be asked to submit a presentation (not more than 12 slides) on the following points:

     

    a. Problem statement/Pain points
    b. Describe your offering/platform/solution briefly:
               –  Features and Functionalities of the Product/Solution
               –  Relevance to the category applied for
               –   Details of technology used for your platform
    c. Highlight your innovation and the impact (or potential impact) on the insurance industry
    d. Include a case study with an insurer/insurance broker (can be anonymous as well)
    e. Customer traction & Revenue generated (in USD)
    f. Details of capital raised (if any) (in USD)
    g. Please provide a graphical representation of statistics concerning product
    i. If graphical representation is not possible, then provide numbers in a tabular format or paragraph format
    h. implementation/results on the following parameters:
               –  Potential cost savings
               –  efficiency improvement,
               –  impact on the value chain
               –  revenue enhancements generated for clients
    i. Team details: Enter the name, details and LinkedIn profile of the founding team members & other key
            members (maximum 3)

1. Cash Prize: The top 3 winners will be awarded a cash prize: 

  • The First prize of Rs.4,00,000, 
  • The Second prize of Rs.3,00,000 
  • The Third prize of Rs.2,00,000 along with appreciation certificates. 

2. Mentoring and Guidance by Insurance Industry Experts: The winners will also be mentored in the implementation of their ideas by experts from the insurance industry.

Evaluation of the proposal:

The proposal shall be evaluated by the panel of industry experts in accordance with the following criteria:

  1. The solution should have the ability to minimize the protection gap in the selected areas.
  2. Scalability of the solution.
  3. Glitch-free application (easy & implementation) process.
  4. Cost-effectiveness and sustainability of the solution.
  5. The technology-based solution is desirable.
  6. Originality and creativity of the invented solutions.
  7. The idea must be worth further investment and a complete business model should be prepared. 

Only the applications which meet the above criteria shall be evaluated. The Academy will have the sole right to accept or reject the applications.

Application StagesProposed Dates
Launch Date15th June 2022
Last date for Application 31st July 2022 
Jury Round 125th August 2022 to 8th September 2022
Final Jury 15th September 2022 to 30th September 2022
Announcement of Winners7th October 2022
Mentoring Sessions8th October 2022 to 24th October 2022