• Penetration metric reform: Insurance penetration should be measured as sum assured divided by GDP rather than premium divided by GDP to better incentivize protection products over savings bundles.
• Agent incentive structure: Policybazaar compensates term insurance advisors higher than savings agents, with top 20% term sellers earning over ₹1 lakh per month, while advocating that industry-wide commissions be tied to sum assured and policy duration rather than upfront premiums.
• Health insurance delivery: Friction during claims arises from delayed underwriting, bad actors, and lack of stakeholder alignment, which PB Fintech is addressing by incubating PB Health and creating a preferred hospital network for seamless cashless experiences.
• Market growth potential: With fewer than 1 crore Indians holding term insurance and 6 crore holding retail health policies, both segments have the potential to grow 5x to 6x as the middle class expands.
• Product simplification priority: Industry reforms should focus on transparent disclosures, clear waiting periods, and drop-dead simple products rather than relying on AI to decipher overly complex policy terms.