As the IRDAI reshapes insurance distribution, reforms must recognise brokers’ role in risk management, claims support and better policyholder protection. Today, they contribute over 40% of general insurance premiums, bringing expertise in risk assessment, product selection, placement, claims advocacy and risk management to businesses and individuals alike.
Narendra Bhirwani, President, Insurance Brokers Association of India
India’s insurance industry stands at a defining moment. With an expanding economy, rising risk exposures, technological transformation and the national aspiration of Insurance for All by 2047, the opportunities are immense.
Yet, realising this potential requires a strong, professional and sustainable insurance distribution ecosystem, with insurance brokers playing a pivotal role.
Over the past two decades, India’s insurance broking profession has evolved from a relatively nascent intermediary segment into an important pillar of the insurance industry.
Brokers today contribute over 40% of general insurance premiums, bringing expertise in risk assessment, product selection, placement, claims advocacy and risk management to businesses and individuals alike.
Unlike other distribution channels, an insurance broker’s fundamental responsibility is to represent the interests of the policyholder.
This distinction is particularly important in an increasingly complex risk environment. Indian businesses face emerging challenges from climate change, cyber threats, supply-chain disruptions, geopolitical uncertainties and evolving liability exposures.
These risks demand professional advice, innovative insurance solutions and access to domestic and international insurance and reinsurance capacity. Insurance brokers serve as an essential bridge between policyholders, insurers and global risk markets.
For India’s vast MSME sector, professional broking assumes even greater significance.
Many smaller enterprises lack dedicated risk management capabilities and depend on brokers not merely to purchase insurance but to understand their exposures, secure appropriate protection and navigate claims when losses occur.
The future of insurance distribution must therefore be viewed beyond the narrow prism of acquisition costs and commissions.
The true value of professional intermediation lies in better risk protection, informed choices, effective claims assistance and improved policyholder outcomes.
India is currently witnessing an important regulatory debate on the economics and architecture of insurance distribution. The objectives of improving affordability, transparency, efficiency and policyholder protection deserve wholehearted support.
However, reforms must also recognise the distinct roles of different intermediaries and preserve the economic viability of professional advisory and servicing capabilities.
Excessive compression of distribution remuneration, without adequately recognising the cost of advisory services and claims support, could unintentionally weaken insurance penetration, particularly in underserved markets.
Sustainable reforms must balance affordability with accessibility, competition, innovation and quality of service.
Technology and artificial intelligence will undoubtedly transform broking operations, enhancing efficiency, analytics and customer experience. Nevertheless, technology cannot fully replace professional judgement, trusted relationships and human intervention during complex claims.
As India deepens its integration with global insurance and reinsurance markets, international collaboration, professional standards, talent development and regulatory stability will become increasingly important.
The Insurance Brokers Association of India remains committed to constructive engagement with policymakers, regulators, insurers and global stakeholders to build a stronger, more inclusive insurance ecosystem.
India does not merely need more insurance policies; it needs better insurance protection, greater trust and dependable support when claims arise.
Professional insurance broking is not simply a distribution cost. It is an investment in risk resilience, policyholder confidence and the sustainable growth of India’s insurance industry.
The future of Indian insurance must be built on value, trust and protection—not price alone.