A STUDY ON SUBSCRIPTION-BASED INSURANCE MODELS

Abstract

The insurance industry is undergoing a fundamental transformation driven by digital disruption, evolving consumer expectations, and the emergence of InsurTech platforms. Subscription-based insurance models represent a paradigm shift from traditional annual-premium, event-driven contracts toward flexible, recurring, and usage-aligned coverage structures. This study examines subscription-based insurance models, analyzing their design principles, pricing mechanisms, consumer adoption drivers, regulatory implications, and competitive positioning relative to conventional insurance products. Primary data was collected through structured questionnaires administered to 120 respondents comprising insurance policyholders, industry professionals, and InsurTech analysts. Secondary data was sourced from IRDAI annual reports, NITI Aayog insurance sector publications, academic journals, and global InsurTech research reports (2021–2024). The study evaluates subscription model performance across four insurance segments: health, life, motor, and micro-insurance. Key findings indicate that subscription models outperform traditional products on flexibility, affordability perception, and digital engagement, but face challenges in adverse selection, claims predictability, and regulatory compliance. Recommendations address pricing optimization, regulatory framework adaptation, and technology integration strategies for sustainable subscription insurance deployment in the Indian market