Government Policies and Regulatory Support for Digital Insurance Inclusion: A Systematic Review of Insurtech-Enabled Life Insurance in India

The insurance industry is in the middle of a substantial digital transformation, driven by advances in Artificial Intelligence, big data analytics, blockchain, cloud computing, mobile technologies and digital public infrastructure. This systematic review shows that government policy and regulatory support have played a decisive role in accelerating Insurtech-enabled life insurance in India and advancing digital insurance inclusion. The review shows that initiatives such as Digital India, the Pradhan Mantri Jan Dhan Yojana, Aadhaar, India Stack, UPI, and regulatory reforms from IRDAI have together built an environment that supports digital insurance innovation — simplifying customer onboarding, improving operational efficiency, cutting transaction costs and widening access to insurance for millions of people. Insurtech has also modernised life insurance substantially, through automated underwriting, AI-driven customer support, digital claims processing, fraud detection, personalised products and integrated digital distribution — improvements that have made the customer experience more convenient while supporting broader financial inclusion. Even so, several challenges continue to constrain digital insurance adoption: limited digital literacy, cybersecurity threats, data privacy concerns, uneven digital infrastructure, AI-related ethical issues and evolving regulatory requirements all remain significant barriers. Addressing them will take continuous policy innovation, effective regulatory oversight, stronger consumer protection and sustained investment in digital infrastructure and financial literacy. Ultimately, the successful expansion of digital life insurance in India depends on government, regulators, insurers, technology providers and consumers working together. Supportive public policy, adaptive regulation, responsible innovation and customer-centric service design will remain essential for strengthening financial inclusion and sustaining growth in India's digital insurance ecosystem. This study adds to the existing literature by bringing together fragmented evidence on Insurtech, government policy and digital insurance inclusion, and by pointing to strategic priorities for future research and policymaking.

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