Insurance License

Become a Corporate Insurance Agent

A corporate insurance agent is a recognised, certified expert serving the needs of a corporate business or group. A corporate insurance agent is a mediator because insurance firms can’t contact every customer. Before giving the services, the corporate insurance broker must determine what the company needs. He must also consider the number of insurers and the services provided in opposition to it. Corporate agents are businesses that take part in producing, soliciting, or servicing the insurance business of life insurers, general insurers, and health insurers. They can be co-operative societies, LLPs, NGOs, rural banks, or Micro Finance Lending Organizations. 

Corporate Insurance Agent

Any entity or person holding a certificate of registration issued by the authority to solicit and serve insurance business for any of the specified categories of general, health and life is referred to as a “corporate agent” as per Regulation 2(b) of the Insurance Regulatory and Development Authority of India (Registration of Corporate Agents) Regulations, 2015. A trusted source who sells insurance on behalf of or as an agent for an insurance company is known as a corporate agent. Since the implementation of legislation on April 2016, numerous corporate agents have registered in accordance with the aforementioned provision. 

The corporate agent sells the insurance company/s products in addition to representing the interests of the insurer. A corporate agent would need to get a corporate agency license in order to work on behalf of the insurance firm. An organisation cannot serve as a corporate agent without a corporate agency license.

Who can become a corporate insurance agent?

An individual who wants to work from the comfort of their home and earn money can choose to become a corporate insurance agent. A fantastic choice for people who are financially savvy, retirees, homemakers, etc. These are some of the benefits:

• Develop a passive source of income from the comfort of your home.
• Become affiliated with a well-known name in the finance sector.
• With additional financial products, boost your income.
• Earn at your own pace.
• A high revenue split.

Eligibility Requirements

To qualify for a corporate agent license, you must meet the following requirements:

Minimum Capital Requirements – A candidate with an insurance distribution firm must have a net worth of Rs. Fifty lakhs and equity capital or contribution, and the organisation is required to manage the net worth criteria at all times. The central government will set the actual holding of contributions or equity shares made by foreign investors for applicants who are requesting in the insurance distribution sector.

The following requirements have to be met by the applicant to be registered as a corporate agent:

A limited liability partnership created under the LLP Act of 2008^[1], a cooperative society registered under the co-operative societies Act of 2013 or the company law, a banking company, a corresponding new bank created under the Banking Companies Act of 1949, a regional rural bank established under the Regional Rural Banks Act of 1976, a non-governmental organisation, or a microlending finance organisation covered under the co-operative society. Any other person may be recognised by the authority to act as a corporate agent.

Other Criteria – The applicant must additionally meet the following requirements in order to be granted a Corporate Agency License;

• Any law now in force should not disqualify the applicant’s application.
• For the application to carry out its operations successfully, it must have access to sufficient office space, equipment, and skilled staff.
• The Principal Office is required by the authority to be a graduate and to complete a minimum of 50 hours of practical training in accordance with the preparation and syllabus.

• To obtain the corporate agency licence, the chief officer and the staff must not have broken the Authority-mandated code of conduct. That must have happened within the last three years.
• If the applicant also runs a business which is not related to insurance, there should be no financial connection between the business and the corporate agency business.
• The key management team must meet the FIT and PROPER specifications.

Benefits of Corporate Insurance Agent

Becoming a corporate insurance agent has many advantages. Some of them are as follows:

Stay updated – Every person eventually aspires to fit into the business culture of suits and boots. The question of whether one’s wish will come true or not, and if it does, if it would fulfil their expectations, is what frightens a person. So, pursuing a career as a corporate insurance agent satisfies all of these aspirations. A corporate insurance agent gains knowledge of the business’s expertise and serves as a consultant to locate and protect them with the appropriate policy. The business becomes his universe, where he or she might envision a career as an insurance agent for businesses.

Financial Freedom – Being a corporate insurance agent unquestionably helps one achieve financial independence, whether one works full-time or while learning. The benefit is that he/she can work when and how he/she wants and yet make as much money as possible.

Numerous Opportunities – There are numerous opportunities to provide different kinds of corporate insurance. This clearly states that there won’t ever be a shortage of possibilities. It depends on his or her resolve to become the highest-paid corporate insurance agent possible.

Personal and Professional Development – One of the key benefits is the growth component. You get to know and interact with many knowledgeable businesspeople who support your personal and professional development.

Corporate Insurance Agent: Roles and Responsibilities

The job of a corporate insurance broker was tiresome and confusing before. It is now simple and convenient when digitisation. Because of this, most Corporate Insurance Agents choose to work with organisations that offer simple online documentation. Another challenge is that not all insurance agents can be entities, which is a crucial prerequisite for business insurance. The best course of action is to partner with a qualified service provider. The organisation Choice Connect provides insurance agents with several opportunities and straightforward procedures.

Application Process for a Corporate Insurance Agent License

1). The applicant should make a corporate agency license application.

• The corporate agent may represent an organisation whose main line of business is unrelated to the distribution of insurance products; the company’s subsidiary activity is the distribution of insurance products.
• A company that wishes to focus solely on insurance intermediation.

2). A corporate agency license application must be submitted using Form A of Schedule I.

3). An Account Payee draft made out by the “IRDAI” is required to cover the fee of Rs. 10,000 plus taxes. You can pay the fees electronically as well.

4). The applicant must acquire a No Objection Certificate (NOC) regarding the same if the applicant is a financial institution. The NOC must handle the corporate agency business transactions. However, corporate agents that hold licences issued in accordance with the 2002 legislation are exempt from submitting a NOC.

5). The submission of the application must fall under one of the following categories:

1. Corporate Agent (Life Insurance)
2. Corporate Agent (General Insurance)
3. Corporate Agent (Health Insurance)
4. Corporate Agent (Composite Insurance)

6). The certificate for registration would be given to the applicant and any group entities of the applicant. However, neither the applicant nor any other company shall be engaged in any other line of business, including that of a corporate agent, Insurance Marketing Company, Insurance Broker, or Corporate Agency Company. There must not be any conflict of interest between the business if an entity is currently engaged in the business of facilitating the purchase of insurance.

• If the prerequisite is not confirmed, the applicant for the corporate agent license will be refused.
• Further information and documentation may be requested from the applicant by the authority.

Documents Required 

Together with the corporate agent licence registration application, the following paperwork is required:

• The LLP/Co-operative Society Companies in accordance with their administrative acts or the Certificate of Incorporation.
• Information about the present or projected branch offices.
• Information about the applicant organisation’s Principal Officer.
• Information about the directors and partners of the applicant organisation
• An organisational chart of the applicant organisation that details the functional duties of each department.
• Net-worth certificate of the applicant certified by a Chartered Accountant.
• Criteria for fit and Proper Declaration
• Application fee receipt.

License Validity

A Corporate Agent’s registration certificate is valid for three years from the date of its issue. But, unless the corporate agent registration certificate is revoked or terminated due to a violation of the authority’s rules, this validity may be compromised before the three years are over.

Conclusion 

To conclude, any person who operates as a corporate agent without holding a valid license, the authority will take legal action against that person under the act or other applicable laws for such violation. Whenever you need clarification in selecting the policies, get assistance from a corporate insurance agent or an insurance broker. It is essential because they are acting in the customer’s best interest.

Also Read: Requirements for Registering as a Corporate Agent