Brokers VS Agent

Brokers VS Agent

27 May 2023
An Insurance Broker represents a client An agent is a representative of an insurance company
A broker works within the parameters of a corporate structure and holds a license from IRDA Usually an individual
The minimum capital investment for a direct broker is Rs 50 Lakh No such requirement
As per IRDA guidelines, brokers are required to have adequate infrastructure and trained manpower Anyone with an academic qualification of 10+2 can become an agent with an insurance company
Direct brokers are subjected to strict monitoring by IRDA (on a regular basis) to ensure best and ethical practices No such monitoring for agents
Direct brokers can work with a number of clients – life and non-life insurance companies An agent can represent only one life and one non-life insurance company during his service years
Offers professional and customized services like – risk management, developing appropriate insurance coverage at correct premium rates Markets products & offers but cannot create any customized solution.
Above all, assists client actively in times of claims No such assistance is guaranteed
A broker is like an insurance company. Globally, many brokerage firms are bigger than insurance companies! Is only a part of the marketing team of an insurance company

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