Insurance Marketing Firm vs Corporate Agent
- November 04, 2023
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Insurance Marketing Firm vs Corporate Agent
The insurance industry has become a crucial part of the nation’s economy. This sector is divided into two categories - life insurance and non-life insurance. The non-life insurance is considered general insurance. Both categories are governed by IRDAI, also it monitors the entire insurance sector in India.
To get into this industry, there are two ways one is an insurance marketing firm and another is a corporate agent. But both of these have their advantages and disadvantages. Below in the article we have shared the difference between an insurance marketing firm and a corporate agent, check to get the complete information.
What is an Insurance Marketing Firm?
The Insurance Marketing Firm (IMF) is a distribution channel which is introduced by the IRDAI in 2015. It offers different financial products required at the different life stages of an individual, these products are health insurance, life insurance and general insurance. The IMF is registered under the Insurance Regulatory and Development Authority of India (IRDAI).
As per the IRDAI press release (November 25th, 2022), the limit of insurers for insurance marketing firms has been increased to 6 insurers for each life insurance, general insurance and health insurance. The limit earlier was 2 insurers each. The reason beyond this step is to expand the area of operation entire state in which they are registered. Along with these tie-ups, the following tie-ups are also allowed:
- Agriculture Insurance Company of India Ltd. (AIC)
- Export Credit Guarantee Corporation Ltd. (ECGC)
All types of products are allowed in life insurance products, but only retail lines are permitted for general insurance. Also, the IMF can distribute other financial products permitted by RBI, SEBI, PFRDA, Department of Posts, etc. after obtaining the approvals from the respective authorities.
Who is a Corporate Agent?
The corporate agent is a company or an individual that represents the insurance company. They fit perfectly in the interest of the insurance company. As per Regulation 2 (b) of the IRDAI Regulations, 2015, having a valid certificate of registration issued by the Authority, for solicitation and servicing of insurance business for any of the specified categories of life, general and health.
The corporate agents are also known as captive agents who can tie up with 9 insurers for each, life insurance, health insurance and general insurance. This limit was changed in last year's IRDAI press release.
The insurance corporate agents are full-time employees or contractors of the company and can sell the products related to that company only. The work of a corporate agent is to manage the existing customers, promote the products, and cater for the needs of the potential customers.
Difference Between an Insurance Marketing Firm and a Corporate Agent
The following are the distinguishing factors between the IMF and Corporate Agents:
Conclusion
To conclude, when stepping into the insurance industry, having an understanding of insurance marketing firms and corporate agents is important. The IMFs provide flexible product range, independence, and access to customizable offerings. On the other hand, the corporate agents have a brand, recognition, resources and specialised knowledge of the industry.
If you want to obtain a license from an insurance marketing firm or corporate agent, then reach out to us. We at Registrationwala, assist our clients in the complete application process to obtain a license.
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