The old ways of doing business are no longer enough. Brokers are dealing with tighter regulation, rising costs, higher client expectations, and a risk landscape that keeps getting more complex. These pressures are forcing a rethink, not just of tools and processes, but of how brokers create value every day.This is a year where the industry’s strengths are being tested and reshaped
Rohit Boda, Group Managing Director, J.B.Boda Group | Chairman, 0910 Holdings
The Indian insurance broking industry is stepping into 2026 facing real pressure and real opportunity.
The old ways of doing business are no longer enough. Brokers are dealing with tighter regulation, rising costs, higher client expectations, and a risk landscape that keeps getting more complex. These pressures are forcing a rethink, not just of tools and processes, but of how brokers create value every day.
This is a year where the industry’s strengths are being tested and reshaped. The firms that will thrive are those that understand not just the challenges, but the trends defining the next chapter.
Pressure on Margins and the Rise of Compliance Discipline
One of the biggest challenges remains margin pressure. Costs for compliance, technology, and talent have gone up, but fees and commissions are not rising at the same pace. At the same time, insurers are more careful about the risks they take on, especially in areas like climate impact, cyber exposure, and supply-chain uncertainties.
Regulation has also tightened.
Brokers are now expected to follow stricter documentation, disclosure, and governance standards. This might seem like extra work, but it also creates a foundation for trust. When compliance is treated as part of quality advice, clients feel more secure and relationships deepen.
Tech Is Not Replacing Brokers but Strengthening Them
Technology today is no longer just about digitising paperwork. Brokers are using AI, data analytics, risk modelling tools, and digital platforms to assess risks more accurately and explain choices more clearly. This doesn’t replace human judgement, it enhances it.
As AI embeds itself in advisory, expectations on brokers will rise. Clients will seek interpretation, not just intelligence – clarity on model limits and the confidence to apply human judgement where it matters. The responsibility is shifting from using technology to applying it wisely.
When routine tasks are handled by technology, brokers have more time to talk with clients, ask better questions, and guide them thoughtfully. In 2026, those who use technology to improve the quality of advice, not just speed up operations, will stand out.
Clients Want Clarity, Simplicity and Consistency
Clients in 2026 are better informed and less tolerant of complexity. They want interactions that are clear, simple, and consistent across digital and human channels – whether onboarding online, discussing needs over a call, or reviewing options face-to-face.
Expectations now go beyond placement. Clients will assess brokers by their presence through the protection tenure, most critically during claims, where advisory value is truly proven.
This shift is pushing brokers to rethink their approach. Instead of purely transactional relationships, clients expect deeper conversations about coverage adequacy, exclusions, pricing impacts, and long-term resilience. Clarity today builds trust tomorrow.
Specialisation Is Becoming a Key Differentiator
As risk landscapes evolve, generic solutions no longer work for everyone. Clients in sectors like manufacturing, energy, healthcare, infrastructure, and tech have very different risk needs. Brokers who understand these sectors deeply are better placed to design meaningful coverages.
Another trend gaining ground is alternative risk solutions. For example, captives or tailored risk programmes. These require deeper technical expertise and closer collaboration with insurers and reinsurers. Here, the broker’s role is not just placement but thoughtful risk shaping.
Collaboration Is Driving Innovation
Innovation in broking is increasingly collaborative. Brokers are teaming up with Insur-Tech firms, data specialists, and reinsurers to build better tools and solution frameworks. These partnerships bring together domain knowledge, technology, and scale – something no single player can build alone.
Working with a broader ecosystem allows brokers to innovate faster and with more confidence, while keeping client interests at the centre.
A Big Policy Shift: 100% FDI in Insurance
One of the most significant developments for the sector this year has been the government’s move to open up the insurance market for foreign investment. On 16 December 2025, the Indian Finance Minister introduced The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 in Parliament, proposed to raise the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%. This change is aimed at attracting more global capital, improving competition, and expanding insurance services across India.
This reform could increase capital flows into the insurance ecosystem, introduce global best practices, and help push insurance penetration higher. All of this could expand opportunities for brokers by broadening product choices and distribution capabilities.
Looking Ahead where Balance Matters Most
2026 is a year of balance. Brokers need to balance efficiency with empathy, data with judgement, and regulation with trust. The pressures are real, but they are also shaping a more resilient, more client-centric industry.
The broker of tomorrow is one who does not just manage risks, but truly helps clients understand and navigate them. That kind of purpose grounded in clarity, discipline and collaboration, will define success over the coming decade.