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A corporate agent is usually a company or an organisation that represents the interest of an insurance provider. As a result, corporate agency operate in the insurance company’s best interests. A corporate agent must adhere to the guidelines and comply with a number of rules. These agents sell the insurance company’s policies in addition to representing the interests of the insurer. A corporate agent would be required to obtain a corporate agency licence in order to work for the insurance business. A corporate agency licence may be obtained by businesses in addition to banks. A bancassurance arrangement, or partnership, is when a bank acts as the corporate agent of an insurance business. Based on their client’s understanding and requirements, banks offer insurance policies to their customers.
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Any entity or person holding a valid certificate of registration issued by the authority for the purpose of soliciting and servicing insurance business for any of the specified categories of life, general, and health is referred to as a “corporate agent” under regulation 2(b) of the IRDAI (Registration of Corporate Agents) Regulations, 2015.
The registration of corporate insurance agents is mandatory under the IRDAI (Insurance Regulatory and Development Authority of India) Regulations which was implemented in 2015. Since the implementation of the regulation on April 2016, numerous agents have registered in accordance with the aforementioned regulation.
Corporate agencies are companies that take part in soliciting, producing or servicing the insurance business of life insurers, general insurers, and health insurers. They can be cooperative societies, LLPs (Limited Liability Partnerships), NGOs, rural banks or Micro Finance Lending Organizations.
There are four types of corporate agents in India.
According to new rules established by the Insurance Regulatory and Development Authority of India, a corporate insurance agent for life, non-life, and health insurance may have agreements with a maximum of three businesses for each of these purposes.
A “Composite Insurance Agent” is someone who has been appointed as an insurance agent by two or more insurers with the restriction that they only act as an insurance agent for one life insurer, one health insurer, one life insurer, and each of the mono-line insurers.
Any modification to the agreement with the insurance company may only be made with the authority’s prior permission and appropriate arrangement in place to support existing policyholders.
The requirements that the corporate agent must satisfy in order to obtain registration are as follows:
The following requirements for granting a corporate agency licence:
Along with the corporate licence registration application, the following documents are required:
The applicant is required to pay a fee of Rs.25000 plus any relevant taxes within 15 days after the receipt of communication from the registration granting authority. If the authority is satisfied with the application, the certificate in Form-B will be issued. Additionally, the applicant would need to receive notification from the authority about the category in which registration has been approved. If particular criteria connected to the regulation are satisfied, an applicant may submit an application for another category. This application must be made only after completing the 1 year of the corporate agency licence.
A corporate agent’s registration certificate is valid for three years from the date of its issue. However, if the corporate agent registration is not revoked or terminated due to a violation of the authority’s rules, this validity may be compromised before the three years have ended.
From this blog, we can understand the concept of corporate agents and the requirement for registering as a corporate agent. The regulator has taken another step to improve insurance penetration with the rise in corporate agents and tie-ups. While taking this action will give customers more options for insurers and products, it is also anticipated to drive innovation in product development, improved usage of technology, and data analytics that will result in a seamless customer experience, thereby increasing the level of financial protection for corporate agent customers.
Read our Article: Regulations for Corporate Agents under IRDAI
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