Insurance distribution reforms must preserve commercial viability of intermediaries: IBAI President Narendra Kumar Bharindwal

How has insurance broking evolved over the past 25 years?

It has been a remarkable journey. The industry has grown to more than 840 brokers, directly employs nearly 50,000 professionals and supports over 15.5 lakh point-of-sale persons. Brokers now account for about 42 per cent of general insurance gross written premium and are also the fastest-growing distribution channel in life insurance. The grant of perpetual licences is a significant ease-of-doing-business reform, though we await the regulator's final data framework.

As head of an apex body of brokers, how do you assess the insurance industry’s growth since liberalisation?

It had witnessed significant transformation. General insurance premiums have risen from about ₹10,000 crore in 2001 to ₹3.36 lakh crore in 2025-26. The market has expanded from four public-sector general insurers to around 64-65 life and non-life players. Products have also become more sophisticated. Motor policies now offer covers such as return-to-invoice, while health policies increasingly cover advanced procedures, including robotic treatment and CyberKnife therapy.

Of late, there has been a greater concern and scrutiny of commissions. Is that justified?

Singling out commissions does a disservice to the wider distribution fraternity. The regulatory architecture has shifted from commission caps to an overall expenses-of-management framework, giving insurers greater flexibility in designing distribution strategies. The debate should therefore examine total expenses, not isolate one component. Distribution requires capital, technology, training and last-mile capacity; making it unviable will directly hurt insurance penetration.

Health insurance is now the fastest-growing in the non-life sector. What is the bigger challenge in health insurance?

The cost of claims needs a holistic review. Motor and health together account for about 80 per cent of general insurance business, with health alone contributing nearly 45 per cent. Medical inflation and opaque hospital billing practices are exerting pressure on insurers. Dialogue among insurers, hospitals and other stakeholders is welcome, but India needs a durable mechanism to address healthcare pricing and disputes without undermining policyholders or medical providers.

What will shape insurance broking over the next five years?

Regulatory stability, ease of doing business and technology will be decisive. Brokers have invested in customer onboarding, CRM systems, distributor training and claims support. Around 55 per cent of the industry’s point-of-sale persons have been appointed by brokers, and an estimated 75-80 per cent of those engaged by brokers operate in smaller cities and rural markets. AI can simplify product communication, KYC and claims processes. Its biggest contribution could be enabling clear conversations in regional languages, allowing insurance to reach customers beyond English- and Hindi-speaking markets.