# Insurance industry needs shift from push to pull model 2026-08-19T13:59:35+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The insurance industry in India must transition from a high-commission push model to a pull model where consumers actively seek products, argues a Hindustan Times analysis. Despite decades of high-cost distribution, insurance penetration remains low, with life insurance penetration falling to 2.7% in FY25 and non-life flat at 1%. Life insurers paid 18% more commission in FY25 while premium grew only 6.7%, and the high-commission first-year premium grew 40% against 9% renewal commission growth. Mis-selling complaints against life insurers rose over 14% in FY25, while complaints against general and health insurers jumped 45%, with more than two-thirds claim-related. The analysis suggests five steps for reform: cleaning products of tricks and unfair costs, underwriting at point of sale rather than claim, making sellers responsible for suitable products and claim facilitation, improving disclosures, and allowing policy-holders to rate service providers. ## Indian Opinion Analysis The push model critique comes as India's insurance penetration lags behind the global average of 7% of GDP. IRDAI has already taken steps such as allowing insurers to offer Bima Sugam, a digital marketplace, and reducing the mandatory solvency margin. The real challenge is aligning agent incentives with consumer outcomes, which may require regulatory intervention on commission caps and mandatory product suitability assessments. Watch for IRDAI's upcoming norms on standardised disclosures and the adoption of AI-driven comparison tools. ## Coverage - hindustantimes.com Frames current regulatory and industry practices as failing consumers, with high commissions and rising complaints. This story was synthesised by AI from the source linked above. Tags: Bima Sugam, health insurance, IRDAI, life insurance Canonical: https://indianopinion.org/insurance-industry-needs-shift-from-push-to-pull-model/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/insurance-industry-needs-shift-from-push-to-pull-model/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/