‘Managing general agents’ can reshape insurance sector

The Insurance Amendment Bill, 2025 — Sabka Bima, Sabki Raksha Act — represents a significant policy milestone in India’s journey towards strengthening insurance penetration and supporting the broader vision of a developed economy. The legislative reforms seek to enhance regulatory agility by empowering the Insurance Regulatory and Development Authority of India (IRDAI) with greater operational flexibility, enabling faster adaptation to evolving market requirements.

A particularly noteworthy provision within the Bill is the introduction of managing general agents (MGAs) as a new category of insurance intermediary. The MGA framework has the potential to reshape the structural and operational dynamics of the insurance sector by improving distribution efficiency, enhancing regional accessibility, and accelerating customer-centric innovation. The MGA model is already well established across several developed insurance markets in Europe and Asia, where it has contributed significantly to product specialisation and market expansion.