Channel-Wise Distribution of Life Insurance

• There is a clear structural shift, between 2015 and 2024, from traditional individual agent–led coverage towards institutional and digital distribution models. In 2015, individual agents accounted for the bulk of lives covered at around 285.89 lakh lives, but this channel has been in steady decline, dropping to 247.24 lakh in 2024, reflecting both market saturation and the growing dominance of alternate distribution networks. At the same time, corporate agents, particularly banks, have emerged as the most powerful force. From a modest 69 lakh in 2015, bank-led coverage surged to over 704 lakh in 2024, highlighting how bancassurance has become the primary driver of insurance penetration, leveraging trust, distribution reach, and integrated financial product sales. Other corporate agents also showed sharp volatility, dipping in the middle years but recovering strongly to cover 455 lakh lives in 2024, suggesting renewed focus on institutional tie-ups and partnerships.

• The broker channel too grew steadily, expanding from just 57.94 lakh lives in 2015 to nearly 457 lakh lives in 2024, making it one of the fastest-growing segments, driven by professional advisory, regulatory support, and rising consumer awareness. On the other hand, direct selling has remained consistently large, though volatile, peaking in the mid-2010s, stabilizing at around 1343 lakh in 2024, and continuing to be a major contributor to overall lives covered. Interestingly, Micro-Insurance (MI) agents were almost negligible until 2020, but suddenly spiked to over 61 lakh in 2021, before settling at 79.5 lakh in 2024, showing targeted efforts in financial inclusion.

• Newer digital and alternative channels, such as web aggregators, IMF, online sales, and point-of-sale models, have remained small in absolute numbers but are strategically significant. Web aggregators and online channels, despite their limited reach (hovering around 1–3 lakh lives annually), play a growing role in urban digital-first customers and are critical for long-term scalability. Similarly, the IMF channel, though tiny, has grown consistently year-on-year, reflecting regulatory encouragement for diversified intermediary models. Common Service Centres (CSCs), which were expected to boost rural penetration, peaked early at over 75 lakh lives in 2020 but have since fallen to negligible levels, showing challenges in sustaining rural distribution through this model.

• Overall, the data reveals a transformation from agent-driven to institution-driven distribution, with bancassurance, brokers, and direct selling leading the charge, while digital platforms are slowly building their foundation. The long-term trend is clear: traditional agents are declining, institutional channels are dominating, and digital will be the next frontier. This shift reflects broader consumer preferences for convenience, trust in institutional networks, and regulatory efforts to diversify insurance penetration across India.