Foreign insurance brokers explore India entry as commercial risk market expands

India’s commercial insurance market is emerging as the next big battleground for global insurance brokers, with a fresh set of foreign players likely exploring entry into the country.

This comes even as established international firms such as Marsh McLennan, Aon, Willis Towers Watson, Lockton, Howden and Arthur J Gallagher & Co continue to deepen their presence in the Indian market.

Industry executives said the interest is being driven by rising demand for sophisticated corporate risk management solutions as India’s economy expands and businesses increasingly seek protection against complex operational, cyber, climate and supply-chain risks.

Unlike the retail insurance segment -- comprising life, health and motor insurance -- which is already crowded with agents, banks, web aggregators and domestic brokerages, commercial lines remain relatively under-penetrated.

The segment largely caters to large corporates and mid-sized enterprises seeking specialised covers such as marine, liability, aviation, engineering, property and cyber insurance.

Industry insiders say this gap is attracting global brokers that see India as one of the few large untapped growth markets globally.

Foreign brokers are particularly betting on India’s manufacturing push, infrastructure expansion and rapid digitalisation to drive commercial insurance demand over the next decade.

As sectors such as renewable energy, data centres, logistics, semiconductors and electric mobility scale up, companies are increasingly looking for customised risk advisory and global underwriting expertise -- areas where multinational brokers believe they have an edge.

Executives said several international intermediaries are evaluating partnerships, acquisitions and joint ventures with local firms to gain a foothold in India, while others are studying the regulatory landscape before making formal entry plans.

Under current regulations, insurance broking remains tightly supervised by the Insurance Regulatory and Development Authority of India, with licensing and foreign ownership norms continuing to shape expansion strategies.

The growing interest also reflects a broader shift in the insurance industry, where commercial broking is increasingly being viewed as a higher-value business compared with mass retail distribution.

Commercial insurance clients typically require ongoing advisory services, risk assessment and global placement capabilities, enabling brokers to earn higher commissions and build longer-term corporate relationships.

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Existing global players have already been expanding aggressively in India.

Howden has scaled operations through acquisitions and hiring, while Lockton has been strengthening its India presence amid growing demand from multinational and domestic clients.

Industry observers expect competition to intensify as newer foreign entrants seek to tap India’s evolving corporate risk ecosystem, positioning commercial insurance as one of the fastest-growing opportunities within the country’s broader insurance market.