The $4.8 bn surge in India's insurance broking

Much like our economy, the insurance industry is in the throes of intense transformation.

- ABHISHEK BONDIA

With projected growth rates that are higher than the global average, the recent introduction of 100 per cent foreign direct investment (FDI) and proactive policies of the regulator, the sector is witnessing significant action.

The industry is expected to grow by 123 per cent by 2030 contributing to a potential penetration increase of five per cent.

Gross written premiums (GWPs) are expected to surge to ₹25 trillion from ₹11.2 trillion in 2024, assuming a few structural shifts. However, for accessible, affordable and comprehensive universal insurance to materialize, considerable efforts are needed to drive up both GWP and intent.

The non-life premium has gone to ₹293,612 crore in the financial year 2024 (FY24) from ₹52,876 crores in FY12.

Despite being one of the fastest-growing insurance markets in the world, India only has 735 licensed brokers, significantly lower than developed markets. Of these, the top 36 drive close to 85 per cent of total revenue.

Only about 38 per cent of the world's largest insurance brokers operate out here despite over 55 per cent of global insurance players being present in the market.