A many-body theory of paramagnetic Kondo insulators is described, focusing specifically on single-particle dynamics, scattering rates, d.c. transport and optical conductivities. This is achieved by development of a non-perturbative local moment approach to the symmetric periodic Anderson model within the framework of dynamical mean-field theory. Our natural focus is the strong coupling, Kondo lattice regime; in particular the resultant `universal' scaling behaviour in terms of the single, exp...