An Insurance Broker is an insurance entity licensed by the IRDA to provide insurance broking services in India. Needless to say, to become an insurance broker, you must meet the eligibility criteria, put together certain documents and apply for the IRDA license. Therefore, in this article, we will tell you the precise process that you can become to start an insurance broking company in India.
If the recent pandemic has one something right, it’s making people aware of the uncertainty of life. To tackle that unknown, people have started to rush towards buying insurance policies – all to safeguard the lives of their loved ones.
But there is an issue; they can’t contact the insurance companies directly.
Insurance policies consist of several terminologies that will go over the head of most customers. Therefore, a new form of trade has arisen from this crisis – insurance brokers.
An insurance broker is an insurance intermediary that acts as a bridge that, in simple terms, circumvents the communication gap between an insurance company and an insurer.
This article will explain the steps you must follow to become an insurance broker in India.
To become an insurance broker, you must have efficient capital. One of the factors that decide that is the type of insurance broker you want to become:
To obtain the IRDA license to act as an insurance intermediary, you need to be a company. Even though you can select either a cooperative society or an LLP, a company is a better option because of the following reasons:
When establishing your company, take care of the following requirements:
For Direct brokers
For Reinsurance Brokers
For Composite Brokers
Go through the IRDA training for an insurance broker if you are the principal officer of your company. The same goes for anyone under your employment that you hire to facilitate insurance services.
It is a 50-hour training regimen where you will learn about the regulations of insurance brokers.
To fulfil the requirements to become an insurance broker, you must put together a file and populate it with the following documents:
You can apply online via the IRDA portal. The process is self-explanatory. In fact, the portal will provide you with a guide that will help you file the application online. The process is as follows:
After receiving your request, the IRDA will assess your application form and documents. Once the assessment is complete, you will receive the insurance broking license as an attachment.
What you read here are the five steps for becoming an insurance broker in India. If you have any further queries, our IRDA consultants are at your beck and call.