According to an HSBC report, offline insurance distribution might increase fourfold to Rs 60,000 crore by FY30

Agent-led insurance distribution in India sourced premiums worth Rs 13,800 crore in FY25 and could scale to Rs 60,000 crore within five years, according to a report by HSBC Global Investment Research.

Motor insurance remains the most widely sold product through agents, known as Point of Sale Persons (POSPs). Over 10% of the country’s total motor insurance sales are currently routed through POSPs, and HSBC estimates this share could rise to 20.6% within five years. Retail health insurance penetration via POSPs is lower at 3.5%, but is projected to increase to 11% by FY30.

HSBC identified four major players in the offline distribution space — Turtlemint, InsuranceDekho, Renewbuy and PB Partners, the offline arm of PB Fintech. While Turtlemint holds around 20% market share, roughly 40% is controlled by PB Partners.

Policybazaar, owned by PB Fintech, entered offline distribution in 2021 with the launch of PB Partners. In the FY26 December quarter, the company reported Rs 732 crore in revenue from this segment but posted a negative EBITDA of Rs 24 crore.

HSBC noted that offline insurance distribution remains a high-burn business. Significant upfront investments in technology platforms, agent onboarding and marketing continue to weigh on profitability. To turn profitable, firms will need to reduce competitive intensity, achieve scale to improve unit economics and maintain high agent productivity.

Regulatory data shows there are 1.7 million registered POSPs in India, with PB Fintech and Turtlemint each having around 400,000. HSBC estimates PB Fintech could reach 37% market share by the end of FY26, compared to about 23% for Turtlemint. Both companies derive roughly 75% to 79% of their business from tier II and III cities.

In the broader insurtech ecosystem, venture capital has largely focused on distribution. While Policybazaar dominates online distribution, offline remains competitive. InsuranceDekho and Renewbuy are in the process of merging, Turtlemint — backed by Peak XV Partners — is preparing for an IPO, and InsuranceDekho is also expected to explore a public listing within the next one to two years.