Offline insurance distribution could surge 4X to Rs 60,000 crore by FY30: HSBC report
The agent-led insurance distribution business sourced premiums worth Rs 13,800 crore in FY25, and this is expected to grow to Rs 60,000 crore within the next five years, according to a report on Indian insurance by HSBC Global Investment Research.
Motor insurance continues to be the most popular product being moved through agents, aka Point Of Sale Persons (POSPs). More than 10% of the total motor insurance sales in the country are done through this route, said the report. Per HSBC’s internal estimates, this share is expected to climb up to 20.6% within the next five years.
The market share of retail health insurance is much lower among POSPs, at 3.5%, but this is also poised to grow to 11% by FY30, says the report.
HSBC has identified four major players — Turtlemint, InsuranceDekho, Renewbuy, and PB Partners (the offline insurance distribution arm of PB Fintech) — in this space. While Turtlemint has around 20% of the market, around 40% is with PB Partners.
Online insurance distribution major Policybazaar forayed into the offline sector in 2021 by launching PB Partners. In the FY26 December quarter, the company reported revenues of Rs 732 crore from this business and negative earnings (Ebitda) of Rs 24 crore.
HSBC noted that offline distribution continues to be a high-burn play, hence companies are in losses. High upfront investments in setting up a technology platform, onboarding agents, and marketing are the three major factors for the losses. In order to turn profitable, firms need to reduce competition among themselves, build massive scale so unit economics improve, and ensure productivity of agents remains very high.
The insurance regulator’s data shows that there are 1.7 million registered POSPs, of which PB Fintech and Turtlemint have around 400,000 each.
HSBC estimates that PB Fintech will have around 37% market share by the end of FY26, compared to around 23% for Turtlemint.
Both the companies get around 75% to 79% of their overall business from tier II and III locations.
In the overall insurtech sector, venture investors have majorly focussed on the distribution space. Though Policybazaar has managed to grab a dominant share of the online distribution business, offline distribution has four major players jostling for the spoils.
While InsuranceDekho and Renewbuy are in the process of merging into one entity, Peak XV Partners-backed Turtlemint is seeking to go public. InsuranceDekho is also planning to go public within a year or two.
Motor insurance continues to be the most popular product being moved through agents, aka Point Of Sale Persons (POSPs). More than 10% of the total motor insurance sales in the country are done through this route, said the report. Per HSBC’s internal estimates, this share is expected to climb up to 20.6% within the next five years.
The market share of retail health insurance is much lower among POSPs, at 3.5%, but this is also poised to grow to 11% by FY30, says the report.
HSBC has identified four major players — Turtlemint, InsuranceDekho, Renewbuy, and PB Partners (the offline insurance distribution arm of PB Fintech) — in this space. While Turtlemint has around 20% of the market, around 40% is with PB Partners.
Online insurance distribution major Policybazaar forayed into the offline sector in 2021 by launching PB Partners. In the FY26 December quarter, the company reported revenues of Rs 732 crore from this business and negative earnings (Ebitda) of Rs 24 crore.
HSBC noted that offline distribution continues to be a high-burn play, hence companies are in losses. High upfront investments in setting up a technology platform, onboarding agents, and marketing are the three major factors for the losses. In order to turn profitable, firms need to reduce competition among themselves, build massive scale so unit economics improve, and ensure productivity of agents remains very high.
The insurance regulator’s data shows that there are 1.7 million registered POSPs, of which PB Fintech and Turtlemint have around 400,000 each.
HSBC estimates that PB Fintech will have around 37% market share by the end of FY26, compared to around 23% for Turtlemint.
Both the companies get around 75% to 79% of their overall business from tier II and III locations.
In the overall insurtech sector, venture investors have majorly focussed on the distribution space. Though Policybazaar has managed to grab a dominant share of the online distribution business, offline distribution has four major players jostling for the spoils.
While InsuranceDekho and Renewbuy are in the process of merging into one entity, Peak XV Partners-backed Turtlemint is seeking to go public. InsuranceDekho is also planning to go public within a year or two.
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