New Delhi, May 21 -- India's general insurance market continues to remain heavily dependent on intermediaries for customer acquisition and policy sales, leading to high distribution costs and concerns around long-term profitability, according to a report by Praxis Global Alliance.

The report noted that nearly 80 per cent of new business in the Indian general insurance industry comes through intermediaries such as brokers, agents and corporate agents.

It stated that while this model has helped insurers rapidly expand their reach, it has also resulted in high customer acquisition costs, low customer ownership and weaker retention levels in key retail products.

The report said, "Indian market is its heavy dependence on intermediaries, whi...