An insurance broker license is the registration certificate issued by the Insurance Regulatory Development of Authority of India. This mouthful organization is responsible for regulating insurance policies in India and thus, provides registration certificates for the incorporation of multiple insurance entities. However, among them, their insurance broker license is the best. Here is why.
The rise of the insurance sector is not hidden from anyone. Every day, more and more insurance companies are cropping up. And to provide the services, more and more insurance intermediaries are entering the market. The reason is the new IRDA policies for a certificate of registration.
It has given rise to many intermediaries of insurance policies. These mediators are not like an agent, but companies with a robust background and the trust of customers. One among them that stands out is the insurance broker.
What is an insurance broker?
It is a company or a cooperative society that act as an intermediary between:
- An insurance company and a customer
- A Reinsurance company and an insurance company
- Or, a combination of both
Because of this versatility, becoming an insurance broker in India is becoming a new trendy thing within the insurance domain. And all it requires is an insurance broker license.
So, here are the reasons why the insurance broker license is the best way to start an insurance business in India.
Related Service: ISNP IRDA
You can provide risk assessment services
When you become an insurance broker, you don’t represent the company, but the customer. As a result, you can provide an objective risk assessment. You can provide a wide variety of services – guiding your clients in finding the insurance policies that suit their financial situation and requirement.
No one will demonize you to be impartial
If one thing that rewards being an insurance broker is being impartial. You don’t do any favors to any particular company. Your job entails guiding the customers with unfiltered facts about the insurance market and policies. And in return, they trust you for it. That trust can carry you forward towards success.
Associate with multiple insurance companies
Earn more money through a commission by your association with multiple insurance companies. The insurance companies can’t solicit their insurance policies. They need the aid of insurance intermediaries. And their first choice is always the brokers. As you already have a presence of those who are seeking you out, you won’t run out of clients. As you gain more traction in the market, more insurers will seek to associate with you.
Choose between 4 types of insurance companies
If you choose to become a direct insurance broker, your options for insurance companies will increase. Direct insurance broking license in India allows you to choose from:
- Health insurance services
- Life insurance services
- General insurance services
- Or, composite insurance services
Just decide which type of insurance policies you can sell properly and procure the license of your choice.
IRDA has regulations to safeguard the interest of insurance brokers
IRDA, which licenses the insurance broker, has created regulations to protect the interests of the broker. Thus, whenever you hit a complication while conducting your business, do not worry, IRDA regulations will be there to give you back up.
Gain more trust from the customers
All the factors that we have explained above establish you as a distinct insurance intermediary. You can help the people in need and you can keep a close watch on the insurance market. As you aid a customer, you gain their trust. And when you become a trusting entity, your value improves. And when it does, there is no limit to things that you can achieve.
So, why become an insurance broker in India?
Becoming an insurance broker is akin to tapping into the vein of the insurance market. You will have access to information of this domain that you can then leverage to assist your customers. The trust you gain from them and the insurance companies that you have a strategic alliance with, really make you the best type of insurance business in India.
And that’s, you should become an insurance broker? You will be a service provider with a distinction.
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