How to start an Insurance Marketing Firm?

Insurance intermediaries can’t survive on insurance services alone. They need to diversify and provide more services. Thankfully, Insurance Regulatory Development Authority of India, heeded to this need and came up with regulations for Insurance Marketing Firm.

An insurance marketing firm is an insurance entity who not only solicits and procures insurance services, but also provides:

1. Surveyor and loss assessor services
2. Broker services, and
3. Marketing of certain financial services.

It’s this multi-faceted nature of an Insurance Marketing Firm that many entrepreneurs are trying to start one of their own. However, it’s not an easy task.

The regulatory requirements alone are enough to make you rethink your prospects. But don’t worry, for this article will guide you through the steps to establish your own firm.

Meet the eligibility requirements for an Insurance Marketing Firm

First, you need to become eligible so that IRDA considers your application to start an Insurance Marketing Firm. To do so, you need to adhere to the following eligibility criteria:

Establish one of the following entities to act as a firm 

1. 1. You can establish a company incorporated under Companies Act, 2013
   2. In case you have more inclination towards a partnership, you can establish an LLP incorporated under Limited Liability Partnership Act, 2008.
   3. If you’re a group of individuals who wish to provide insurance services as a society, you can establish a Cooperative Society under the Co-operative Societies Act, 1912.

Personal Recommendation

If you want to establish a successful firm, you should opt for an entity that’s the most organized one among them – a Private Limited Company.

Meet the net worth requirement

The net worth of your entity should be at least INR 10 Lakh. To acquire that amount, you can either bootstrap or look for investors who believe in your venture.

Wisely name your entity

Whatever name you choose for your insurance marketing company or LLP, you must add the term “Insurance Marketing Firm” to its name somewhere.

Note: Before naming your company, you must approach IRDA online for a No Objection Certificate. Once you have the certificate, you’ll have IRDA’s approval to use the term “Insurance Marketing Firm” in your company’s name. Read More Useful License:Corporate Agent License

Choose an appropriate principal officer for firm

A Principal officer is the one responsible for conducting and overseeing day to day operations of your insurance marketing firm. Thus, make sure to choose an officer with one of the following qualifications:

• Fellow or Associate of Insurance Institute of India, or
• Associate or Fellow of Institute of Actuaries of India, or
• A chartered accountant, or
• An officer with post graduate qualification from the institute of Insurance and Risk Management, or
• A fellow with five years of experience in the insurance business, or
• A graduate with over 10 years of experience providing financial services.

Furnish the required documents

Once you’ve met all the eligibility criteria, you must start putting together the following documents:

1. Certificate of incorporation of your company. society or LLP.
2. Memorandum of Association of your company.
   1. LLP agreement if you’re applying as a Limited Liability partnership
   2. Co-operative Society By-laws if you’re applying as a Co-operative society
3. Net worth certificate of your entity.
4. Audited Balance sheets
5. Details about the principal officer
6. A document detailing the type of activities you want to undertake as an Insurance marketing firm.
7. NOC to use the term “Insurance Marketing firm” in the name of your firm.
8. Details of the Financial Service Executive
9. Details of the Insurance Sale person.
10. In case you’ve on-boarded a surveyor and loss assessor, provide their details.
11. IMF training certificate of the Principle Officer.

Apply online to get approval to start Marketing firm

Scan the documents once you’ve furnished them. Upload them on the IRDA website as you apply to obtain the approval to establish Insurance Marketing firm in India.

After you’ve submitted the documents and the application, IRDA will start their assessment. If  it encounters any discrepancies with the way you’ve applied or with the documents you’ve submitted, you’ll get a notification.

Respond by fixing those discrepancies with the prescribed deadline and you’ll obtain the approval to establish an Insurance Marketing firm. Related Content: What is Experimental License In India

Conclusion

An Insurance marketing firm is an insurance intermediary providing more than just insurance services. As a unique marketing entity, it can help you penetrate the insurance domain and establish your foothold there pretty early on.

Nevertheless, you’d need the approval of IRDA to establish an Insurance Marketing Firm. With this blog, you now know how to implement it.

If you need assistance following these steps, consult with Registrationwala. Just drop a mail or reach out to us via website for many more licenses.

How to start an Insurance Marketing firm in India? Read to know the procedure to obtain the approval to establish an Insurance marketing firm. Just contact us for more information regarding these types of licenses.