Brokers vs Agent
| An insurance Broker is a representative of his client | An agent is a representative of an insurance company |
| A broker is a corporate structure who is licensed under strict guidelines from IRDA |
Usually an individual |
| The minimum capital requirement for the direct broker is Rs 50 Lakh | No such requirement |
| Brokers are required by IRDA to have adequate infrastructure and trained manpower | Anyone with an academic qualification of 10+2 can become an agent |
| Strict monitoring by IRDA on a regular basis to ensure best and ethical practices | No such monitoring for agents |
| Can place business with any of the life and non-life insurance companies | Can represent only one life and one non-life insurance company |
| Offers professional services like risk management, developing appropriate insurance coverage at correct premium rates | Offers product driven marketing |
| Above all, assists client actively in times of claims | No such assistance is guaranteed |
| A broker is like an insurance company. Globally, many brokerage outfits are bigger than insurance companies! | Is a part of the marketing team of an insurance company |
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