The announcement was made at IBAI’s Annual Broker’s Meet where emerging trends, growth strategies, and challenges confronting the insurance broking sector was also addressed
The global insurance brokers market is projected to grow to USD 300 billion in 2032, according to a recent report, highlighting the immense potential for the broking channel in insurance, stated Debasish Panda, Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), during the Annual Broker’s Meet.
Further emphasising the significant role of technology in the insurance sector, he added, “A report by the global consulting firm Mackenzie estimates that AI technologies alone will add on to USD 1.1 trillion in annual value for the global insurance industry. This presents a tremendous opportunity for insurance brokers as they understand their customers and utilise tech-based mechanisms using AI/ML to communicate their preferences to insurers, resulting in highly tailored offerings.”
IBAI also launched a nationwide campaign to promote insurance education and empower individuals with the knowledge to make informed decisions about their insurance needs. The campaign, set to cover 500,000 students in schools and colleges across the country, will focus on raising awareness about various types of insurance, the benefits of insurance coverage, and the importance of financial protection.
As one of the fastest-growing economies in the world, India has witnessed a surge in demand for insurance products and services, leading to a significant increase in insurance penetration by insurance brokers. Thus, the importance of regulatory norms governing insurance brokers is crucial, as highlighted by Sumit Bohra, President at IBAI. He stated, “The regulatory norms governing insurance brokers play a crucial role in supporting our industry. We appreciate the efforts made by regulatory authorities to create an enabling environment that fosters competition, transparency, and consumer protection. At IBAI, our aim is to empower insurance brokers to effectively navigate the changing landscape and deliver enhanced value to their clients.”
The insurance broking industry aims to achieve a 25 per cent compound annual growth rate (CAGR) by 2030, confirmed Bohra.