Listen to this article
Brokers and agents drive non-life business.
Data released recently by IRDAI shows that insurance brokers account for 37% of the total business premium received by the non-life insurance companies in FY 2024.
Brokers contribute 32% of the total business premium for public general insurance companies and 42% of the total business premium for private non-life insurers, shows the data.
Individual agents also play a significant role by brining in 20% of the total business premium for non-life industry in FY 2024. Agents contribute 32% of the total premium collection for public sector insurers. On the other hand, they contribute 14% of the total premium collection in the private sector.
Corporate agents like banks and national distributors account for 9.4% of the total premium collection with bank-led contributions more prominent in the private sector at 9.1%.
Direct business channels, including internet and non-internet modes collectively contribute 26% of the total premium collection of the industry.
The public sector generated a substantial 31% of its premiums through non-internet direct business, reflecting the growing preference for direct distribution.
Specialized insurers rely heavily on unique channels under the "Others" category, which accounts for 86.5% of their total premium collections.
Here is the table that shows contribution of insurance agents and intermediaries in general insurance business (2023-24) (Figures in Percentage of Premium)
|
Distribution Channel |
Public Sector |
Private Sector -excl. SAHI |
Specialised Insurers |
Total |
|
1. Individual Agents |
32.3 |
14.4 |
0.0 |
20.1 |
|
2. a Corporate Agents-Bank |
0.7 |
9.1 |
0.0 |
5.7 |
|
2. b Corporate Agents- Others |
0.2 |
5.9 |
0.0 |
3.7 |
|
Corporate Agents (Total) |
0.9 |
15.1 |
0.0 |
9.4 |
|
3. Brokers |
32.1 |
42.4 |
3.8 |
37.1 |
|
4. a Direct Business- Internet |
0.5 |
1.7 |
0.2 |
1.2 |
|
4. b Direct Business- Other than internet |
30.6 |
21.8 |
9.4 |
24.4 |
|
Direct Business (Total) |
31.1 |
23.6 |
9.6 |
25.6 |
|
5. Micro Insurance Agent |
0.0 |
0.0 |
0.1 |
0.0 |
|
6. Others |
3.6 |
4.5 |
86.5 |
7.8 |
|
Grand Total |
100.0 |
100.0 |
100.0 |
100.0 |