India’s insurance industry needs to shift from document-based agent onboarding to a digital verification model backed by identity checks, artificial intelligence and continuous monitoring to strengthen trust, reduce fraud risks and improve compliance.
The analysis says India’s insurance agent network has expanded rapidly, making traditional onboarding processes increasingly difficult to manage. It argues that verification should become the foundation of onboarding, replacing systems that rely primarily on document collection and manual approvals.
Expanding agent network calls for stronger verification
Citing the Insurance Regulatory and Development Authority of India (IRDAI) Annual Report 2024-25, the analysis states that life insurers had 31.23 lakh individual agents as of March 31, 2025, up from 28.95 lakh a year earlier. During the year, 11.15 lakh agents were appointed while 8.87 lakh were terminated. General insurers had 7.73 lakh agents and standalone health insurers had 15.49 lakh individual agents.
The report notes that manual onboarding systems built around scanned documents, spreadsheets and fragmented approval processes can create operational delays and leave gaps in risk assessment. It argues that onboarding should be viewed as a verification exercise rather than a document collection process.
AI and digital checks proposed to improve onboarding
The analysis recommends using digital identity verification, database searches and background screening to validate applicants beyond submitted documents. It says verification should identify inconsistencies, gaps and other indicators that may require closer examination before onboarding decisions are made.
Artificial intelligence is presented as a supporting tool that can compare information across records, analyse documents and prioritise cases requiring additional review. However, the analysis emphasises that AI should assist human decision-making rather than replace it.
It also suggests that stronger verification processes can improve the experience for genuine agents by reducing repeated document requests, providing better visibility into application status and enabling faster activation while maintaining secure handling of personal information.
Continuous monitoring highlighted as key compliance measure
The analysis states that compliance should extend beyond the onboarding stage through ongoing monitoring and periodic reviews. Referring to IRDAI’s Insurance Fraud Monitoring Framework Guidelines, 2025, which came into effect on April 1, 2026, it notes that insurers are required to monitor business trends, strengthen fraud risk controls, maintain incident databases and share information on blacklisted distribution channels with the Insurance Information Bureau.
Risk associated with agents can evolve over time due to regulatory developments, customer complaints or changing business activity. It recommends that insurers maintain verification records, establish periodic review mechanisms and create audit trails to support accountability.
The report concludes that technology should be used to strengthen trust rather than simply accelerate onboarding, adding that digital trust depends on continuous verification, monitoring and accountability throughout an agent’s association with an insurer.
