The
biggest opportunity lies in transforming distribution economics
This
underwriting profitability opportunity is structural and can be unlocked
through targeted strategic action. India’s market remains highly intermediated,
with ~80% of business sourced through agents, brokers, and partners. Today,
customer ownership often sits with intermediaries rather than insurers,
resetting economics at each renewal.
Insurers
can aim for direct customer ownership by strengthening direct customer
engagement and relationships over the customer lifecycle, This can create an
opportunity for optimizing distribution costs, reinforcing underwriting
discipline and building more durable profitability.
As
insurers deepen customer ownership, the market can progressively shift toward
value-led growth, improved retention, and enhanced lifetime value creation.
The
road ahead: Unlocking underwriting-led profitability
Bridging
the underwriting gap presents a step-change opportunity for the industry.
Aligning with global benchmarks could expand profit pools by up to 2.8x and 2x
RoEs toward global levels-highlighting that sustainable long-term value
creation will come from strengthening core insurance economics alongside
investment performance.
This
shift will require greater customer ownership. Globally, D2C-led insurers
outperform on underwriting by combining lower distribution costs with stronger
control over pricing and customer relationships. Owning demand and engagement
can be a critical lever to improving retention, risk selection, and long-term
profitability.
Exhibit
3: Achieving US-level underwriting performance could generate up to 2.8x profit
and at least 2x RoE