Context:
The Insurance Brokers Association of India (IBAI) released a comprehensive report titled “Leading the Path to Insurance for All: Broker of the Future”, in collaboration with McKinsey & Company, to mark its 24th Foundation Day in Mumbai (August 2025).
Key Highlights:
- Low Insurance Penetration in India:
- Health insurance: Only 2 in 5 Indians are covered.
- If government schemes are excluded, this falls to just 1 in 4.
- Life insurance: Only 1 in 2 adults has any life insurance.
- Rural Access Gap:
- 65% of India’s population resides in rural areas.
- Yet, only 2% of life insurance branches are located in rural India.
- Rural India contributes 45% of GDP but remains underserved.
- Projected Market Growth:
- Insurance market to grow from ₹11 lakh crore (2024) to ₹25 lakh crore (2030).
- Insurance penetration to rise from 3.7% to 5%, closing the gap with the global average of 6.8%.
- Retail Gross Written Premiums (GWP) expected to double to ₹21 lakh crore by 2030.
- Life Insurance Challenges:
- Penetration rate: 2.8%.
- Large protection gap due to limited adoption of pure term insurance products.
- Broker Ecosystem:
- Only 735 licensed insurance brokers in India.
- Top 36 brokers account for 85% of insurance broking revenue.
- Many small brokers have failed to scale or digitize.
About IBAI (Insurance Brokers Association of India)
- Status: Statutory trade body under Section 25 of the Companies Act, 1956.
- Headquarters: Mumbai, Maharashtra
- President: Sumit Shantilal Bohra
- Role: Represents and regulates all licensed insurance brokers in India.
