MUMBAI: The Insurance Brokers Association of India (IBAI) kicked off its silver jubilee year with a bold vision and bolder numbers. At its 24th Foundation Day celebration in Mumbai, the association unveiled its flagship report – ‘Leading the Path to Insurance for All: Broker of the Future’ – developed in collaboration with knowledge partner McKinsey & Company. The report, launched by Shri C.P. Radhakrishnan, Governor of Maharashtra, paints a bullish picture: India’s insurance sector could more than double from Rs 11 lakh crore in 2024 to Rs 25 lakh crore by 2030.
Marking the occasion, Mr. M Nagaraju, IAS, secretary, Department of Financial Services, urged brokers to move beyond metros and into Bharat – Tier 2, Tier 3 towns, SMEs, and agri sectors. “IBAI must partner with public institutions and state governments to ensure truly democratic access to insurance,” he said.
The McKinsey report doesn’t pull punches. India’s 91 per cent protection gap is among the highest globally. Just 1 in 2 Indians has life insurance; 2 in 5 have health cover. Strip away government schemes, and that number drops to 1 in 4. Rural India contributes 45 per cent of GDP, yet only 2 per cent of insurance branches exist in these areas.
Retail and SME segments are projected to be the twin engines of growth. The retail market alone could swell to Rs 21 lakh crore, driven by mass-market demand. On the institutional side, non-life premiums could nearly triple to Rs 2.8 lakh crore, largely fuelled by health and property insurance.
Speaking at the event, M Nagaraju, IAS, Secretary, DFS, MoF said, “I congratulate IBAI on embarking on its silver jubilee year and commend its efforts through initiatives like the Brokers Voice survey, I Broker Magazine, and the Claims Handbook. As India moves towards the goal of ‘Insurance for All by 2047’, the role of insurance brokers becomes increasingly vital. IBAI has emerged not just as a trade body but as a responsible stakeholder and thought leader in the insurance value chain. I urge brokers across the country to actively contribute to this national mission—especially in Tier 2 and Tier 3 cities, among small businesses, and in the agriculture sector. IBAI must work closely with the government and public institutions to build awareness, simplify products, and enhance capacity, ensuring truly democratic access to insurance. I also encourage brokers to actively participate in state-level insurance programs.”
Insurance Brokers Association of India president Narendra Bharindwal said, “India’s insurance sector is entering a new era of opportunity, with the potential to more than double by 2030. The growth, however, needs to be secured by fast focus on bridging the massive 91% protection gap that exists in the country. At this moment, brokers have a strategic inflection point. Moving away from merely intermediaries, brokers are becoming trusted advisors that will translate awareness into action and build trust in underserved markets. Regulations permitting, with access to growth capital and investments in digital capabilities, brokers would be able to scale, drive inclusion, and form the bedrock of India’s journey toward ‘Insurance for All’ by 2047. This empowerment must begin now.”
McKinsey & Company senior partner Peeyush Dalmia said, “The Indian insurance industry is at an inflection point. Despite significant growth in premiums, the sector continues to face challenges such as a protection gap and low coverage. Transforming Indian insurance requires innovation and collaboration from all stakeholders, including insurers, brokers, industry bodies, and regulators. Brokers are situated at the intersection of demand and supply, could potentially lead the journey towards the aspiration of ‘Insurance for All by 2047’.”
The report, based on surveys of 2,500 retail customers and 100 institutional clients, uncovered a startling insight: while awareness is rising, intent to buy remains low. Among affluent individuals and HNIs, 60 per cent believe their life insurance should be 10× their salary, but only 30 per cent actually have that cover. Trust is key as 70 per cent of HNIs rely on advisors, while mass-market consumers trust friends and family.
On claims, the story is grimmer. Half of HNIs and over 55 per cent of SMEs report dissatisfaction with claims handling, citing delays, paperwork, and poor support.
India has 735 licensed insurance brokers, but the top 36 control 85 per cent of revenues. Capital access is limited. Regulatory support and digital investment, the report suggests, could transform brokers into true financial allies — especially in mass and SME markets.
The study outlines four strategic interventions to become the Broker of the Future:
● Drive demand through segment-specific, omnichannel engagement
● Unlock access in underinsured markets
● Partner on product innovation
● Create transparent, hassle-free claims and after-sales experiences
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