How to become an insurance broker/agent in India?

Who is an insurance broker/agent?

Categories of an insurance broker

• Direct Broker (Life, General, Life & General) - Direct brokers solicit and arrange insurance business and provide claims consultancy and risk management services for its clients. The broker offers this service for remuneration or fees.
  
  
• Reinsurance Broker - Those who solicit and arrange re-insurance for clients with insurers/reinsurers are called reinsurance brokers. They  provide claims consultancy and offer risk management services permitted under IRDAI (Insurance Brokers) Regulations, 2018. 
  
  
• Composite Broker - Composite Brokers are registered to solicit and arrange insurance/reinsurance, providing claims consultancy, risk management services or similar services to clients. This is offered under IRDAI (Insurance Brokers) Regulations, 2018, for a specific remuneration or fees.

Functions of an insurance broker

• Obtain information on the client’s business and risk management philosophy with regard to certain insurance products like term, life, health. etc.
• Explain insurance coverage, terms and products to the clients.
• Maintain detailed knowledge of the various insurance products.
• Submit quotations received from insurers to the clients for their consideration
• Assist clients in paying premiums for the availed insurance product.
• Manage proper records of claims made by clients. 
• Assisting clients in opening e-insurance accounts, issuing e-insurance policies and negotiating claims.

What is needed to become an insurance broker?

• Research the insurance market - Before diving into a career as an insurance broker, it’s important to understand the insurance industry in India. Take time to research the different types of insurance policies offered, insurance companies that operate in the country, and the regulations that govern the industry.
  
  

• Obtain the necessary education and training - To become an insurance broker or agent in India, make sure to fulfil the necessary educational qualifications, like completing the 12th class exam. You must clear the IRDAI licensing exam post that to start selling insurance policies to clients.
  
  

• Pass the insurance broker/agent licensing exam - Once you have completed your education and training, you must pass the insurance broker licensing exam administered by the Insurance Regulatory and Development Authority of India (IRDAI).
  
  

• Register with the IRDAI - After passing the licensing exam, you must register with IRDAI to obtain your insurance broker licence. You will need to submit an application and pay the required fees.
  
  

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How to register for the insurance broker licence?

Documents required to get an Insurance agent’s licence

• Details as required in Schedule I - Form B
• Copy of Memorandum of Association and Articles of Association as per the requirements of the Companies Act 2013.
• Fee payment slip for the particular category of insurance broker licence.
• Schedule-I Form F with relevant data of the principal officer.
• Relevant information as required in the Schedule I - Form B
• Fit and proper certification.
• List of qualified persons responsible for managing and procuring brokerage business and their qualifications.
• Declaration from a key management executive, principal officer, or director of the company mentioning they are not having any form of disqualification.

• Details of directors/partners, promoters and key management personnel must be provided. 

Validity of the insurance broker licence