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Insurance Broker License
An insurance broker serves as an aid to insurance companies as they help sell their insurance products to potential customers. They play a vital role in maximizing their sales by suggesting apt products to end-users based on their requirements. In response, the insurance companies pay the mutually agreed commission to the broker. The terms insurance broker and insurance agent are often used interchangeably, which is technically incorrect.
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Types of Insurance Brokers
1. Direct Brokers
Licensed by IRDAI, direct brokers offer advisory services to clients, sorting, orchestrating, and advising insurance policies with insurers. Their key role involves staying updated on the prevailing market trends, maintaining paperwork, and helping with claims negotiation. The minimum capital requirement for Direct Broker registration has been capped at Rs 75 lakhs.
2. Reinsurance Brokers
Reinsurance brokers bridge the direct insurers and reinsurers by arranging contracts. They work at the forefront, allowing either party to focus on other key areas. Their primary role involves negotiating contracts and finding apt policies. IRDAI demands a minimum capital requirement of Rs 4 Crore for such a registration.
3. Composite Brokers
As the name suggests, a composite broker serves a dual function, one being a direct broker and another being a reinsurance broker. IRDAI specifies Rs 5 crore as a minimum capital requirement for such a registration.
Eligibility Criteria and Procedure to Apply
- Partnership under the Limited Liability Partnership Act, 2008.
- Co-operative society under the Co-operative Society Act, 1912.
- Company established under the Companies Act, 2013.
- Any individual recognized by IRDAI to carry on insurance broker business.
Once meeting the above requirements, you can proceed with the registration process by filing Form B of Schedule I. The said application shall go along with mandatory paperwork listed in the Form C of the regulations.
Adviso: Your Strategic Partner in Insurance Broker License
Securing or applying for an Insurance broker license requires meeting endless regulations and registration norms. If you are a newbie, the chances are you might have trouble addressing such requirements. That’s where Adviso’s expertise comes into play. Our professionals ensure hassle-free and expedited process, helping you navigate every step, from application to license grant.
Why Choose Adviso?
Expert Consultation: Personalized consultancy at its best, allowing you to gain insights into the regulatory requirements specific to your venture.
Document Assistance: Documentation is the core of any registration process, and a broker license is no different. That’s why we pay extra attention to paperwork so that you can grab your license in one go.
Regulatory Liaison: Our robust liaising makes us a standout service provider, helping us stay transparent and compliant throughout the registration process.
Post-License Support: Avail of support beyond registration, stay compliant with industry-specific norms while catering to day-to-day operations.
Frequently Asked Questions
No, both serve different lines of business. While, insurance brokers represent customers, securing apt policies, the agent helps companies sell insurance products via direct involvement.
Adviso facilitates top-tier service, helps with paperwork arrangement, and ensures end-to-end support till the grant of certification.
Yes, any individual recognized by IRDAI can apply for an insurance broker license.
Direct Broker: Rs. 75 lakhs, Reinsurance Broker: Rs. 4 crore, Composite Broker: Rs. 5 crore.
If an application is rejected, you can re-apply after one year form the rejection date.
