The Big Profit Unlock in General Insurance
15 May 2026
2 min read
Indian general insurers can become 2.8x more profitable and deliver nearly 2x higher returns to shareholders. This report by Praxis Global Alliance shows how.
Today, the industry is growing fast. But the core business of insurance - underwriting - is still not making enough money. Growth has not translated into better economics.
A big reason is how the industry is structured. It is heavily dependent on intermediaries, who control more than 80% of the business. This dependence is also increasing with time. Intermediaries help insurers reach customers, but they also own the relationship.
This shows up in a few clear ways:
- High switching and weak retention: In motor insurance alone, annual churn is over 50%, leading to repeated acquisition costs and weaker long-term value
- Weak brand connection: Only about 35% of customers remember the name of their insurer. Decisions are driven by price or the agent, not by brand, keeping insurers stuck in a cycle of churn
- Clear global contrast: Insurers that deal directly with customers perform better. They are more profitable, deliver higher returns, and have happier customers. Some global players generate RoEs of up to 40%
- Early signs of change in India: Customers are willing to go direct if insurers offer better service, clear and simple product explanations, and transparent pricing. Those who already buy direct report about 30% higher satisfaction levels
The opportunity is clear. The winners will not be those who grow the fastest, but those who get closer to the customer and build businesses that grow profitably over time.
The findings of this report draw on a survey of over 1,200 insurance consumers, discussions with 15+ Indian and global insurance leaders, and a research into the best practices across 20+ top global insurers. The analysis is supported by a detailed review of financial disclosures and operating metrics of 20+ Indian general and health insurer, along with Praxis’ proprietary datasets and sector insights.
The findings of this report draw on a survey of over 1,200 insurance consumers, discussions with 15+ Indian and global insurance leaders, and a research into the best practices across 20+ top global insurers. The analysis is supported by a detailed review of financial disclosures and operating metrics of 20+ Indian general and health insurer, along with Praxis’ proprietary datasets and sector insights.