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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