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Procedure on How To Become an Insurance Broker – Elephant Insurance.
published on February 21, 2022

Most companies distribute the same through brokers and agents, while few companies sell insurance products directly to clients. To work as per convenience and the opportunity to create a massive difference in a person’s life working as an insurance broker offers more flexibility. It is the most rewarding career as it helps people to take care of children, build assets, plan for retirement, and pass wealth from one generation to the next.

Things that insurance brokers do:

Insurance brokers are majorly independent. They don’t have an agreement with particular insurers. They usually represent insurance buyers and take forward the applications to insurers on behalf of their clients. Ideally, after becoming an insurance broker, they are not appointed by insurers. Instead, they educate the clients about several insurance products from different insurance companies and help them choose the best among them.

The majority of the people wonder whether ‘Insurance Agents and Insurance Brokers – Are the same? 

What makes insurance brokers unique from insurance agents?

Insurance brokers choose from a variety of insurance products and help the clients to choose a policy that is adequate for their needs. In contrast, insurance agents work with one company and sell insurance products available in their company. You can determine the most appropriate products for them, unlike agents, they provide options, and it’s up to the clients to assess the products they need. Additionally, brokers typically charge payments that are higher than those authorized by an agent.

Who can apply for an insurance broker license?

When it comes to becoming an insurance broker, an Insurance broker license and their operations are issued as per IRDA regulations. The ones who can apply for an insurance broker license are:

  • A company registered under the Companies Act, 2013 or any previous variant.
  • A registered co-operative society is registered as per the provisions of the Co-operative Societies Act, 1912, or other similar laws.
  •  An LLP registered under the Limited Liability Partnership Act, 2008.
  •  Any person recognized by the authority.

Qualification and training details:

  • Must have a bachelor’s/master’s degree or any equivalent qualification like being a fellow or an associate of the Insurance Institute of India/Insurance Institute of Risk Management/Insurance Brokers Association of India.
  • The person must have undergone adequate hours of theoretical and practical training recognized by the Insurance Regulatory Authority of India.
  • Once training is over, get passed the exam conducted by the National Insurance Academy.
  • Retain a minimum capital as per regulations provided by the authority.
  • Engage in any insurance consultancy or reinsurance activity for seven years from the date before the application is submitted. Otherwise, being a principal underwriter or manager in any nationalized company in India.

The license can be issued after the necessary conditions are satisfied. Unless the same is suspended by the regulations, it can be valid for 3 years from the issued date. Before the license gets expired, a broker may apply for license renewal within 30 days. Brokers carrying brochures and loads of policy documents to meet people are not a situation anymore.

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Alliance Insurance Brokers Pvt. Ltd.
8th Floor, Gold Crest, 10th Road, Juhu, Vile Parle (W), Mumbai 400 049, India
Email
Monday - Saturday
9:30 am - 6:30 pm IST
CIN: U67200MH2003PTC141621
IRDAI Registration No.: 217
Valid from : 13/10/2021 to 12/10/2024
Category : Composite Broker
Principal Officer Name: Mr. S. V. Thakkar
*All discounts provided by insurers as per IRDAI approved insurance plans. Standard T&C apply.
Insurance is the subject matter of solicitation. For more details on policy terms, conditions, exclusions, limitations, please refer/read policy brochure carefully before concluding sale.
Visitors are hereby informed that their information submitted on the website may be shared with insurers for soliciting insurance policies.The product information for comparison displayed on this website is of the insurers with whom our company has an agreement.Product information is authentic and solely based on the information received from the Insurer.
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