{"id":4843,"date":"2021-05-05T05:36:01","date_gmt":"2021-05-05T05:36:01","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=4843"},"modified":"2021-05-05T05:39:29","modified_gmt":"2021-05-05T05:39:29","slug":"how-to-set-up-an-insurance-brokerage-company-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/","title":{"rendered":"How to Set Up an Insurance Brokerage Company in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">From 2003 onwards, lots\nof insurance brokers have entered the insurance industry in India and encouraged\nit to great heights. The insurance business has always been highly money-making\nand risk fee. Here are some figures proving the same: The gross insurance\npremiums collected in the Financial Year 2019 totalized at an enormous Rs.\n962.05 Billion for a non-life insurer.&nbsp; For\nlife insurers, it reached at Rs. 1.09 trillion experiences a hike of 3.66%\nwithin a single year as per <strong><em>IBAI (Insurance Brokers Association of\nIndia).<\/em><\/strong><\/p>\n\n\n\n<p>The overall premiums\ncollective via insurance brokers expanded at 17% CAGR in the year of 2014 to\n2019. Further, according to a report by primefeed, around 469 insurance brokers\nstand licensed by the insurance regulating authority IRDAI as of July 2020.<\/p>\n\n\n\n<p>All such facts clearly\nprove that the insurance brokerage company in India is experiencing stable\ngrowth. Therefore, such a small start-up idea is worth a try. Also, there is\nnot so much risk concerned here, and the Indian Government also has been progressively\npushing the insurance business in India.<\/p>\n\n\n\n<p>If you want to set up an\nInsurance Brokerage Company in India, then you need to follow all the\nguidelines and instructions as we described in this article. In this blog, you\nare going to know how to set up an Insurance Brokerage Company in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a54e623adb48\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a54e623adb48\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#What_is_meant_by_an_Insurance_Brokerage_Company\" title=\"What is meant by an Insurance\nBrokerage Company?\">What is meant by an Insurance\nBrokerage Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#What_are_the_Tasks_Performed_by_Insurance_Brokerage_Company\" title=\"What are the Tasks Performed by\nInsurance Brokerage Company?\">What are the Tasks Performed by\nInsurance Brokerage Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#Different_Types_of_Insurance_Broking_Companies\" title=\"Different\nTypes of Insurance Broking Companies\">Different\nTypes of Insurance Broking Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#Criteria_for_Insurance_Brokerage_License\" title=\"Criteria\nfor Insurance Brokerage License\">Criteria\nfor Insurance Brokerage License<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#Who_can_apply_for_this_License\" title=\"Who can apply for this License?\">Who can apply for this License?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#What_are_the_Essential_Documents_Required_to_get_Insurance_Broker_License\" title=\"What are the Essential\nDocuments Required to get Insurance Broker License?\">What are the Essential\nDocuments Required to get Insurance Broker License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#How_can_you_apply_for_an_Insurance_Broker_License\" title=\"How can\nyou apply for an Insurance Broker License?\">How can\nyou apply for an Insurance Broker License?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-set-up-an-insurance-brokerage-company-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_meant_by_an_Insurance_Brokerage_Company\"><\/span>What is meant by an Insurance\nBrokerage Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Such a company works as\nan advisor of insurance plans, and you may face some problems with decisions\nlike whether to choose an investment plan or insurance. Whether to buy a health\ninsurance policy for family or individual health insurance. This is what an\ninsurance brokerage company assist you with.<\/p>\n\n\n\n<p>Such brokerage firms or\ncompanies have qualified or well-trained staff who partner with the insurance\nfirms and possess good knowledge regarding the insurance and insurance-related\nlaws. Insurance brokers guide people concerning their insurance requirements.\nThey perform as an intermediary between the insurance firm and an individual\neager to buy an insurance plan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Tasks_Performed_by_Insurance_Brokerage_Company\"><\/span>What are the Tasks Performed by\nInsurance Brokerage Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An insurance brokerage company is highly skilled in handling different types of insurance and regulating insurance concerning risks. Such a firm or company requires to possess an insurance broker license. Now, getting the <a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/insurance-broker-license\"><strong>insurance broker license<\/strong><\/a><strong> <\/strong>involves having to pass specific examinations. Hence, education needs to make sure that insurance brokers have an extraordinary level of proficiency in the field. <\/p>\n\n\n\n<p>Further, the Chief\nOfficers of such brokerage companies are well informed about all the different\ntypes of insurance policies and how they work. They will guide you perfectly when\nit comes to selecting the right policy as per your needs. Whether it health insurance,\ngeneral insurance, life insurance or any other type of insurance, they have got\nyour back. For example, a broker can correctly explain to their customer about\nall the risks involved and the particular coverage offered by the insurance in\nquestion. Also, they have a good idea of what type of or which insurance you\nrequired. They describe the liabilities &amp; risks involved in various types\nof insurance plans and how to govern them.<\/p>\n\n\n\n<p>Unlike insurance agents whose only duty is to sell the insurance policies to the clients, insurance brokers hold a higher level of responsibilities. In fact, the customer can even sue an insurance brokerage company if they fail to provide the promised results.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Insurance_Broking_Companies\"><\/span>Different\nTypes of Insurance Broking Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong><em>Direct Insurance Broker:<\/em><\/strong> Such broker tries to procure insurance policies. They help their customers with the policy buying procedure. They also assist the customers in choosing from a group of insurance policies and earning a commission for selling a policy. Direct Insurance Brokerage company also render market information regarding insurance. Moreover, Direct Brokers are divided into three different types:<\/li><\/ul>\n\n\n\n<ol><li>Direct Life Insurance Broker;<\/li><li>Direct Non-Life Insurance Broker;<\/li><li>Direct Life and Non-Life Insurance.<\/li><\/ol>\n\n\n\n<ul><li><strong><em>Reinsurance Broker:<\/em><\/strong> Such type of brokers\u2019 purchases reinsurance for a company. The procedure involves negotiating rates and searching for valid policies.<\/li><li><strong><em>Composite Insurance Broker:<\/em><\/strong> Such brokers have a valid license for delivering insurance services. They can provide both general and life insurance plans. The authorities or insurance companies selectively provide a license to such applicants.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Criteria_for_Insurance_Brokerage_License\"><\/span>Criteria\nfor Insurance Brokerage License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> To safeguard an insurance broker license, you need to register with the IRDAI (Insurance Regulator and Development Authority of India). Moreover, the Indian Government has put forward some minimum criteria for procuring an insurance broker license. So to get this License, you need to fulfil such requirements to apply for an insurance brokerage license. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_apply_for_this_License\"><\/span>Who can apply for this License?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>Companies registered under the\nCompanies Act, 2013;<\/li><li>LLPs or Limited Liability\nPartnerships registered under the LLP Act, 2008;<\/li><li>Co-operative Society registered\nunder the Co-operative Societies Act, 1912 or any other version of it.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Essential_Documents_Required_to_get_Insurance_Broker_License\"><\/span>What are the Essential\nDocuments Required to get Insurance Broker License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicant should\nprovide the essential documents and other required details as per <strong><em>Form\nC of Schedule I<\/em><\/strong>. This is done as per the specifications of the IRDA\nRegulations. You can check the documents as mentioned below:<\/p>\n\n\n\n<ol><li>Fill the application form in\naddition to all the vital information in Form B;<\/li><li>Submit the copies of MOA or\nMemorandum of Association and AOA&nbsp; or\nArticle of Association of the article company;<\/li><li>Form G of Schedule I comprise\ninformation regarding the Principal Officer. This would contain information\nsuch as if the capable Principal Officer satisfies the criteria mentioned in\nForm G or not;<\/li><li>Submit Form C of Schedule I;<\/li><li>Declaration stating that the\nPrincipal Officers, the Directors, Partners, etc. are not excluded as per the <strong><em>Section\n42D of the Insurance Act<\/em><\/strong>;<\/li><li>Details of directors,\npromoters, partners, advertisers, etc.;<\/li><li>A list of all the well-trained\nagents with their qualifications;<\/li><li>Details of the bank account of\nthe company;<\/li><li>Audited company balance sheet;<\/li><li>Submit\na copy of the board resolution passed by the members for promoting the company;<\/li><li>Details of the infrastructure\nof the company consisting particulars such as work power, office space, IT\ninfrastructure equipment, and so on;<\/li><li>Principal\nBanks plus details of the statutory auditors;<\/li><li>List\nof all the shareholders of the company (present +proposed);<\/li><li>Additional\ndetails if needed.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_can_you_apply_for_an_Insurance_Broker_License\"><\/span>How can\nyou apply for an Insurance Broker License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"650\" height=\"465\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/05\/image-7.png\" alt=\"apply for an Insurance Broker License\" class=\"wp-image-4844\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/05\/image-7.png 650w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/05\/image-7-300x215.png 300w\" sizes=\"(max-width: 650px) 100vw, 650px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>Step 1:\nSubmit the Application:<\/em><\/strong> First, you need to submit a\nduly filled application form for an insurance broker license (Form B of\nSchedule I). Other essential documents, along with the fees, need to be\nsubmitted to IRDAI.<\/p>\n\n\n\n<p><strong><em>Step 2:\nInspection of Documents:<\/em><\/strong> Once you filled and submitted\nthe application form along with the documents to the IRDAI, then your documents\nwill be inspected briefly by the authorities.<\/p>\n\n\n\n<p><strong><em>Step 3:\nSubmit Extra Documents:<\/em><\/strong> After being informed by the\nauthority, you need to submit some extra documents asked for. The due time is\ngiven for this is around thirty days or a month.<\/p>\n\n\n\n<p><strong><em>Step 4:\nIn-Principal Approval:<\/em><\/strong> The vital documents of the\ninsurance brokerage company are verified, and if the documents and details\nprovided by the applicant seem agreeable, then they will issue the in-principal\napproval to the insurance brokerage company. This approval means that you have\ncomplied with all the requirements for the registration certificate.<\/p>\n\n\n\n<p><strong><em>Step 5:<\/em><\/strong>\n<strong><em>Further\nRequirements<\/em><\/strong>: After receiving the above approval, the company should\nabide by all the further requirements and also pay the license fees. The fee\ncan be paid through DD or through an electronic medium in favour of IRDAI,\nHyderabad.<\/p>\n\n\n\n<p><strong><em>Step 6: COR (Certificate of Registration):<\/em><\/strong> If all the requirements and regulations suggested by the <em><strong>IRDA Insurance Broker Regulations, 2018<\/strong><\/em><sup><a class=\"text-primary\" href=\"https:\/\/irdai.gov.in\/ADMINCMS\/cms\/frmGeneral_NoYearLayout.aspx?page=PageNo4092\"><strong>[1]<\/strong><\/a><\/sup><strong> <\/strong>are fulfilled, then a Certificate of Registration is granted to the insurance brokerage company. <\/p>\n\n\n\n<p><strong><em>Step 7:\nApproval:<\/em><\/strong> Then, the relevant authority will inspect\nto verify the data and documents. If the applicant satisfied all the\nconditions, then the authority will approve the application for insurance\nbroker registration. If the necessary eligibility criteria are met, then an\ninsurance broker license will be issued in the applicant&#8217;s name. The License is\nonly valid for three years from the date of issuance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Insurance firms convert accumulated capital into productive investment. Insurance loss enables financial stability to be reduced and promotes trade and commerce activities that result in suitable economic growth and improvement. Hence, insurance companies play an essential role in the feasible development of the national economy. Insurance brokers are authorized to provide the best insurance policy from any insurance company. Insurance Brokerage Company can give you professional advice on suitable insurance policies.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/compliance-of-insurance-broker-under-irdai\/\">A Complete Guide on the Compliance of Insurance Broker under IRDAI\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From 2003 onwards, lots of insurance brokers have entered the insurance industry in India and encouraged it to great heights. The insurance business has always been highly money-making and risk fee. Here are some figures proving the same: The gross insurance premiums collected in the Financial Year 2019 totalized at an enormous Rs. 962.05 Billion [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":4858,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[44],"tags":[625],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4843"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=4843"}],"version-history":[{"count":21,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4843\/revisions"}],"predecessor-version":[{"id":4867,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4843\/revisions\/4867"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/4858"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=4843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=4843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=4843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}