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Individual agents have been successfully warding off competition from brokers and direct channels in the health insurance space to maintain their dominance for the last 10 years.
According to Go Digit General Insurance's draft IPO prospectus, individual agents accounted for 35% of total gross direct premium income (GDPI) by health insurance players in FY 2021. The share has ranged from 30 to 36% for the last 11 years.
Direct channels have been the second largest distribution channel. Their share in yearly GDPI has been 28-38% during the period.
Distribution channels for health insurance (% of GDPI):
Source: Go Digit’s draft IPO prospectus based on IRDAI data
Motor insurance: Agents dominate ‘third-party’; brokers lead in 'own damage'
In third-party motor insurance, individual agents have maintained the highest share in yearly GDPI for at least the last 11 years. They accounted for over 50% GDPI in the segment in 8 out of these 11 years.
Distribution channels for ‘third-party’ motor insurance (% of GDPI):
Source: Go Digit’s draft IPO prospectus based on IRDAI data
However, their share in the 'own damage' motor insurance business has declined slowly over the years to stand at 26.5% in FY 2021 as against 44% in FY 2010.
Distribution channels for ‘own damage’ motor insurance (% of GDPI):
Source: Go Digit’s draft IPO prospectus based on IRDAI data
Individual agents' share in the overall (health+motor) business stood at 24% in FY 2021. Brokers had the highest share at 31%.
