A robust proprietary channel is necessary for sustained growth of the insurance sector, a BCG report said today.
While multi-partnership bancassurance architecture will open up opportunities for insurers, health of the agency channel cannot be neglected, said the Boston Consulting Group (BCG) report, which was released here during a FICCI insurance summit.
Agency channel economics are difficult to sustain for most insurers, the report said, adding that it is likely that India is the only large country in the world with a fixed cost agency channel.
Not enough insurers have truly attempted to design the agency of the future and hence this is an opportunity to innovate and take the lead in this space, it said.
