Different Types of Insurance Brokers | Categories of Insurance Brokers | Enterslice
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2 سال پیش
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The insurance sector in the
The insurance sector in the country witnessed a significant growth in the past decades, in terms of the kinds of insurance policies available as well as the potential buyers for such policies. This increase led to an urgency for the Insurance Regulatory and Development Authority of India to introduce different intermediaries in the sector.
What exactly are insurance brokers?
Insurance brokers are entities that are tasked with representing the interest of insurance buyers by acting as a catalyst between insurance companies and the buyers. The concept of insurance brokers was introduced in 2002 when the IRDA (#InsuranceBroker) Regulations were first enacted. Insurance brokers are primarily engaged in providing insurance advisory and risk management assistance to insurance buyers, enabling them to manage their risks associated with life, health and property more carefully.
Insurance brokers serve as intermediaries between insurance companies and insurance buyers, helping the buyers to make the right purchase, renewal and claim choices. These entities affiliate with insurance companies, understand the terms and conditions, costs and coverage of their policies and help insurance buyers choose the best policy as per their risk requirements. Operating as an insurance broker requires a license from the #IRDA as per the IRDA (Insurance Broker) Regulations of 2018.
Different kinds of insurance brokers that can operate as per the IRDA regulations.
In India, there are three main categories of insurance brokers: Direct Brokers, Reinsurance Brokers and Composite Brokers. These categories are based on the different functions that can be undertaken by these insurance brokers.
The most commonly known category that is Direct Brokers.
Direct brokers are those insurance brokers that serve as an intermediary between insurance companies and insurance buyers. These insurance brokers provide insurance advisory, claim consultancy and risk management to insurance buyers, directly helping them with their insurance purchase, renewal and claim needs.
The key functions of direct brokers are listed under the IRDA regulations and include:
Obtaining the client's information and risk management needs; understanding the client's business and underwriting information for the insurer; providing advice on the best insurance policy and terms; maintaining a detailed database of available insurance products; assisting clients in paying premium; assisting in negotiating claims, opening e-insurance accounts, etc.
Direct brokers are further categorised as Direct Broker (Life), Direct Broker (General) and Direct Broker (Life & General). Direct broker (life) can engage in insurance broking activities only for life insurance products. They cannot deal in general insurance or non-life insurance policies. Similarly, direct brokers (General) can deal only with non-life insurance products such as health insurance, travel insurance, marine insurance, car insurance, etc., but cannot deal in life insurance policies.
While filing an insurance broker license application, the applicant must carefully mention which kind of direct broker they wish to operate as. If the applicant is granted a license under the direct broker (life) category, they cannot undertake insurance broking functions for general insurance products.
The next kind of insurance brokers are Re-insurance Brokers. These brokers are also called brokers for the insurance companies since they provide insurance broking services between insurance companies and reinsurance companies. When insurance companies wish to insure their financial risk, re-insurance brokers provide them advisory, claim consultancy and risk management services with re-insurance companies.
The key functions of a re-insurance broker include advising insurers on technical data on reinsurance covers available in the international insurance and reinsurance markets; maintaining database of available reinsurance markets, including solvency ratings of individual insurers; providing reinsurance risk management services; selecting and recommending a reinsurer or group of reinsurers to the insurance company; creating market capacity and facility for new, stressed, emerging and existing business and asset class for and from insurers and reinsurers; providing primary loss advice within time, ensure prompt collection and remittance of funds, etc.
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What exactly are insurance brokers?
Insurance brokers are entities that are tasked with representing the interest of insurance buyers by acting as a catalyst between insurance companies and the buyers. The concept of insurance brokers was introduced in 2002 when the IRDA (#InsuranceBroker) Regulations were first enacted. Insurance brokers are primarily engaged in providing insurance advisory and risk management assistance to insurance buyers, enabling them to manage their risks associated with life, health and property more carefully.
Insurance brokers serve as intermediaries between insurance companies and insurance buyers, helping the buyers to make the right purchase, renewal and claim choices. These entities affiliate with insurance companies, understand the terms and conditions, costs and coverage of their policies and help insurance buyers choose the best policy as per their risk requirements. Operating as an insurance broker requires a license from the #IRDA as per the IRDA (Insurance Broker) Regulations of 2018.
Different kinds of insurance brokers that can operate as per the IRDA regulations.
In India, there are three main categories of insurance brokers: Direct Brokers, Reinsurance Brokers and Composite Brokers. These categories are based on the different functions that can be undertaken by these insurance brokers.
The most commonly known category that is Direct Brokers.
Direct brokers are those insurance brokers that serve as an intermediary between insurance companies and insurance buyers. These insurance brokers provide insurance advisory, claim consultancy and risk management to insurance buyers, directly helping them with their insurance purchase, renewal and claim needs.
The key functions of direct brokers are listed under the IRDA regulations and include:
Obtaining the client's information and risk management needs; understanding the client's business and underwriting information for the insurer; providing advice on the best insurance policy and terms; maintaining a detailed database of available insurance products; assisting clients in paying premium; assisting in negotiating claims, opening e-insurance accounts, etc.
Direct brokers are further categorised as Direct Broker (Life), Direct Broker (General) and Direct Broker (Life & General). Direct broker (life) can engage in insurance broking activities only for life insurance products. They cannot deal in general insurance or non-life insurance policies. Similarly, direct brokers (General) can deal only with non-life insurance products such as health insurance, travel insurance, marine insurance, car insurance, etc., but cannot deal in life insurance policies.
While filing an insurance broker license application, the applicant must carefully mention which kind of direct broker they wish to operate as. If the applicant is granted a license under the direct broker (life) category, they cannot undertake insurance broking functions for general insurance products.
The next kind of insurance brokers are Re-insurance Brokers. These brokers are also called brokers for the insurance companies since they provide insurance broking services between insurance companies and reinsurance companies. When insurance companies wish to insure their financial risk, re-insurance brokers provide them advisory, claim consultancy and risk management services with re-insurance companies.
The key functions of a re-insurance broker include advising insurers on technical data on reinsurance covers available in the international insurance and reinsurance markets; maintaining database of available reinsurance markets, including solvency ratings of individual insurers; providing reinsurance risk management services; selecting and recommending a reinsurer or group of reinsurers to the insurance company; creating market capacity and facility for new, stressed, emerging and existing business and asset class for and from insurers and reinsurers; providing primary loss advice within time, ensure prompt collection and remittance of funds, etc.
Know more visit: https://enterslice.com/learning/what-...
Want to know more about #Enterslice
Share, Support, Subscribe!!! to our YouTube channel: http://bit.do/fqM2B
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2 سال پیش
در تاریخ 1401/02/12 منتشر شده
است.
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