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Individual agents have maintained their stronghold in the insurance industry. They brought in majority of individual new business premium for life insurance and health insurance whereas their share in non-life was healthy in FY 2023.
Life insurance business
IRDAI data shows that they brought in 53% of the individual new business for life insurers in FY 2023. However, their contribution declined marginally from 55% in FY 2022. Their contribution in new premium was Rs. 4.15 lakh crore in FY 2023.
Corporate agents, which mostly includes banks, were the second-biggest contributors in new sales with a 33% share.
While the sole public player LIC derives 96% of its individual new business through individual agents, private companies get the majority of their new business (53%) from banks.
Data from IRDAI shows that contribution of individual agents in business of private life insurers is 23%, which is much lower compared to that of LIC.
At the industry level (including both public and private players) direct sales bring 8% of the total individual new business of life insurers.
While the sales from other channels is negligible in case of LIC, private players get significant business direct sales, brokers and non-bank corporate agents as well.
In case of group life insurance, direct channels dominate the sales for both LIC and private players.
Let us look at the table to know more:
General insurance
IRDAI data shows that the non-life insurance industry depends on insurance brokers and agents to generate new business. Both the intermediary categories brought in 56% of the total new business premium collection of the general insurers in FY 2023.
While insurance brokers account for 36% of the total new business premium, agents have contributed over 20% to the new business of non-life companies.
Also, direct sale i.e. business generated by in-house employees has healthy share in the new business premium. Non-life insurance companies received 25% of the new business premium from this channel.
Individual agents top the new business of PSU general insurers by contributing 33% to the total new business premium. Direct sale and brokers contributed 32% of the total new business premium collection.
In terms of private general insurers, brokers took the lead with a lion share of 43%. Direct sales and individual agents have the next highest share of 24% and 14%, respectively.
Here the table indicating business performance by various distribution channel.
Health insurance
Individual agents account for 73% of the total individual health policies sold during FY 2023.
Other intermediaries like corporate agents, direct sales through company and insurance brokers account for 9%, 6% and 9% of the total individual health policies, respectively.
In group health policies, brokers and direct business account for 48% and 32% of the total health insurance sales in FY 2023, respectively.
Business performance of health insurance for FY 2023 (in % of premium)
