The Insurance Industry of India is very attractive in terms of return on investment and the market is yet to explore widely subject to demographic statistics of the Country. Overall Investment Hub of the globe is now been shifting to India. The insurance industry is also very promising to adore foreign Investment and domestic too, precisely the Government has increased the limit of foreign investment on Insurance companies and its Intermediary services. Insurance Marketing Firm is also one best segments of the Insurance Industry in India.
What is Insurance Marketing Firm?
It is an entity registered by the authority to solicit or procure insurance products, undertake insurance service activities, and distribute other financial products by employing individuals licensed to market, distribute and service such other financial products.
Who can apply for this Registration?
As per the provision of Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015 Company formed under Companies Act, 2013, Limited Liability Partnership formed under the Limited Liability Partnership Act, 2008 or Co-operative Societies registered under Co-operative Societies Act, 1912 can apply for this registration. Collectively they are called Applicant and the other criteria set up in the Regulation need to be fulfilled by such entity so that Registration from Authority can be received.
- Aspirational District: It is a focused district designated by NITI Aayog, Government of India. It can be understood as an economically backward district.
- Principal Officer: Director or partner or any officer approved by authority to exclusively carry out the functions of Insurance Marketing Firm and who possesses the requisite qualification and practical training and who has passed the examination as prescribed.
Qualification of Principal Officer:
The Qualification of a Principal Officer is divided into two aspects i.e. Academic and Training
- Member of Insurance Institute of India, Mumbai or Institute of Actuaries of India, Charter Institute of India or ICAI or ICSI or ICWAI
- Post Graduate from Institute of Insurance and Risk Management, Hyderabad or
- Graduation with Insurance experience of Two Years or
- Graduation with Five Years’ experience in the financial services sector or
- Master in Business Administration
25 hours of training and pass the examination for the qualification of Principal Officer from Insurance Institute of India, Institute of Actuaries of India, Chartered Insurance Institute of London, or Post Graduate from Institute of Insurance and Risk Management, Hyderabad.
Other than the above qualification Principal Officer, needs to take 50 hours of Insurance Marketing Firm Training from an institution recognized by authority and should pass an examination.
Insurance Sales Person: It is the title given to an individual employed by Insurance Marketing Firm to solicit or procure insurance products.
Qualification and Certification of Insurance Sales Person (ISP).
ISP as per academic qualification should pass the +12 examination from a recognized Board/Institution.
ISP should be resident in the area of Registration of Insurance Marketing Firm.
They should take 50 hours of training and pass the examination to be qualified as Insurance Sales Person.
Financial Service Executive: It is a designation given to individuals employed by Insurance Marketing Firm and holding valid licenses issued by respective financial regulators, other than the authority.
Scope of Business:
Insurance Marketing Firm shall engage an Insurance Sales Person for the purpose of soliciting and procuring insurance products of a maximum of two life insurers, two general insurers and two health insurers at any point of time. Further in addition two general insurer, it can engage with Agriculture Insurance Company of India Limited and Export Credit Guarantee Corporation Limited. In addition to this, the financial products of mutual fund, pension products, banking and financial products etc. can be sale via Insurance Marketing Firm. These are collectively termed as Scope of Business of Insurance Marketing Firm.