Difference between Insurance Broker vs. Corporate Agent for IRDAI registration 

When it comes to choosing an intermediary in the insurance industry, it's really important to understand the distinct roles played by insurance broker companies and corporate agent companies. While both help in facilitating insurance services between insurers and customers, their roles, responsibilities, regulatory requirements, and scope of operations vary significantly. 

The Insurance Regulatory and Development Authority of India (IRDAI) has framed separate regulations for Brokers and Corporate Agents to maintain transparency, accountability, and customer-centric practices. In this article, we offer detailed parameters of the difference between insurance brokers and corporate agents company registration, including definitions, eligibility criteria, registration process, NOC from IRDA , capital requirements, and compliance obligations.

What is an Insurance Broker?

As per the IRDAI (Insurance Brokers) Regulations, 2018, an Insurance Broker is a licensed intermediary who acts on behalf of the client (policyholder) and offers advice, negotiation, and arrangement of insurance covers across multiple insurance companies and their primary duty is to represent the interest of the customer and ensure that the client gets the best possible insurance product.

Types of Brokers: 

• Direct Broker: Deals directly with clients and provides insurance solutions across life, general, and health insurance.

• Reinsurance Broker: Specializes in arranging reinsurance for insurers.

• Composite Broker: Offers both direct and reinsurance services. 

What is a Corporate Agent?

According to the IRDAI (Registration of Corporate Agents) Regulations, 2015, a Corporate Agent is an entity licensed to solicit and service insurance business for a maximum of three insurers (one each in life, general, and health) in a specific geographical area. They act on behalf of the insurer, not the customer, and operate like an extended branch of the insurance company.

Whom Do Corporate Agents & Insurance Brokers Represent? 

Eligibility Criteria for the Registration 

For Insurance Brokers 

• Must be a company registered under the Companies Act, 2013.

• Minimum capital requirements:

• Direct Broker – Rs.75 Lakhs

• Reinsurance Broker – Rs.4 Crores

• Composite Broker – Rs.5 Crores

• Net worth requirement: 100% of capital

• Must obtain a No Objection Certificate (NOC) from IRDAI for the proposed name and MCA Approval.

• Appoint a Principal Officer and Broker Qualified Persons (BQPs).

• Maintain a Professional Indemnity Insurance policy. 

Note:In accordance with the IRDAI (Insurance Brokers) Regulations, 2018, every insurance broking entity must include the words “Insurance Broker,” “Insurance Brokers,” or “Insurance Broking” in its legal name. 

For Corporate Agents 

• Must be a Company registered under Companies Act, 2013

• LLP under LLP Act, 2008

• Co-operative Society

• Bank or NBFC

• NGO or Microfinance Institution

• Appoint a Principal Officer with requisite qualifications.

• Must fulfill IRDAI’s “fit and proper” criteria.

• Infrastructure readiness (office space, manpower, IT systems).

• Submit a business plan, grievance redressal policy, tie-up strategy, etc. 

Note: Unlike insurance brokers, corporate agents are not required to include the word "Corporate" in their legal name. The IRDAI (Registration of Corporate Agents) Regulations, 2015 do not mandate any specific nomenclature to be used in the name of a corporate agent entity. That said, while it is not compulsory, using terminology that aligns with the nature of the business may help in brand positioning, but it is not a regulatory requirement. IRDAI retains the right to direct a name change if the proposed name is deemed undesirable or misleading.

Capital and Net Worth Requirements 

Note: As per the latest amendments to the IRDAI (Registration of Corporate Agents) Regulations, 2015, any Corporate Agent engaged exclusively in insurance intermediation activities is required to maintain the following financial thresholds: 

• A minimum share capital or contribution of Rs.50 lakhs, and

• A minimum net worth of Rs.50 lakhs, which must be maintained at all times during the validity of the registration. 

These above requirements are intended to check the financial stability, operational soundness, and long-term commitment of corporate agents operating in the insurance distribution space. Compliance with this requirement is subject to periodic verification by IRDAI through audited financial statements and declarations filed by the company. 

List of Valid Corporate Agents as on 1st Jan 2025

Insurance Brokers Registration Process (via IRDAI Portal) 

• Get NOC for name approval from IRDA and apply name at MCA

• Submit an online application with IRDAI and submit prescribed forms and fees.

• Upload documents:

• Certificate of Incorporation

• MoA and AoA

• Net Worth Certificate

• Business Plan

• Principal Officer Qualification and Training Certificate

• Infrastructure details

• Details of Promoters and Directors

• Submit PI Insurance details.

• Pay application and registration fee:

• Application Fee – Rs.25,000 to Rs.50,000

• Registration Fee – Rs.1.5 Lakhs to Rs.5 Lakhs 

For Corporate Agents Registration Process (via Corporate Agency Portal) 

• Submit request for login credentials with incorporation and financial documents.

• Upload checklist with documents:

• Net Worth and MoA along with AOA with updated object of the company

• Fit and proper declarations

• Consent from insurers

• Business Plan

• Principal Officer training proof & certificates

• Pay fees:

• Application Fee – Rs.10,000

• Registration Fee – Rs.25,000

• PO Certificate – Rs.500

• SP Certificates – Rs.500 each 

Scope of Business for Insurance Company like Corporate Agents & Insurance Brokers  

Compliance and Reporting

Compliances for Insurance Brokers 

• File returns and disclosures as per IRDAI timeline.

• Maintain:

• Record of policies

• Claim support

• Commissions received

• Comply to training and renewal requirements of PO and BQPs.

• Professional Indemnity Insurance coverage:

• Direct Broker – Minimum Rs.1 Crore

• Composite Broker – Rs.10 Crores (minimum) 

Compliances for Corporate Agents 

• Submit annual and half-yearly reports.

• Upload tie-up agreements.

• Maintain grievance redressal records.

• Must check SPs and PO hold valid certifications

• Cannot act as insurance broker simultaneously. 

Renewal and Validity 

Basic key Differences between the Corporate Agents & Insurance Broker company  

What should be chosen ? 

Choosing between an Insurance Broker and a Corporate Agent depends on your business model, target market, and product strategy. Brokers offer flexibility, a broad spectrum of policies, and customer-first advisory. On the other hand, Corporate Agents are ideal for entities looking to partner exclusively with insurers, especially in rural or institutional outreach.

With well-defined regulations, IRDAI ensures both intermediaries serve their respective roles with transparency and integrity. It is vital for applicants to adhere to registration requirements, ensure regulatory compliance, and maintain proper documentation to stay in good standing with the Authority.

How Compliance Calendar LLP Can Help in IRDA Registration Service ?

Compliance Calendar LLP offers end-to-end support for Insurance Broker company, Corporate Agent registration, IMF Company under IRDAI regulations, including other insurance companies regulated by IRDAI and also helps in document preparation, online portal filing, Principal Officer and SP certification guidance, and drafting of board-approved policies and business plan for the company. Team at CCL, guide in meeting capital for increase of share capital and net worth requirements, maintaining regulatory compliance with MCA, Income Tax, GST etc., including IRDAI submitting annual and half-yearly returns. With a team of experienced professionals, we allow timely registration, seamless compliance, and strategic guidance for successful insurance intermediation operations.

Get in Touch Today with Compliance Calendar LLP for any Registration of company and license process :-
 Email: info@ccoffice.in

 Phone: +91-9988424211

 Visit: www.compliancecalendar.in

FAQs on Insurance Broker company & Corporate Agency 

Q1. Can a corporate agent become a broker?

Ans. No. A Corporate Agent and Insurance Broker are mutually exclusive under IRDAI norms. An entity must choose one role and register individually. 

Q2. Can brokers work with foreign insurers?

Ans. Yes, Reinsurance Brokers can work with foreign reinsurers subject to IRDAI approvals.

Q3. What is the maximum FDI allowed?

Ans. Insurance Brokers: 100% under automatic route (as per latest policy).

• Corporate Agents: FDI must comply with sectoral caps and control norms. 

Therefore, any foreign subsidiary company wishing to register as a Corporate Agent with IRDAI can apply for approval after fulfilling the basic registration conditions and complying with FEMA compliance FDI Reporting under FCGPR with RBI post company incorporation.

Q4. Who is a Principal Officer?

Ans. The Principal Officer is a key executive responsible for overseeing and managing the insurance broking operations of a firm. As per IRDAI regulations, the Principal Officer must hold an executive position—such as CEO, Managing Director, Whole-time Director, Managing Partner, or Managing Trustee—or be an individual appointed exclusively to perform the functions of an insurance or reinsurance broker. This individual is entrusted with fulfilling all compliance, regulatory, and operational responsibilities mandated under the Insurance Brokers Regulations.

To qualify, the Principal Officer must: 

• Undergo mandatory training from an IRDAI-recognized institute,

• Pass the examination conducted by the National Insurance Academy (or another notified body),

• Meet the “fit and proper” criteria laid out by IRDAI. 

Q5. Can an Insurance Broker carry out other businesses?

Ans. No, an insurance broker company registered with IRDAI is not permitted to engage in any business other than insurance broking or those activities explicitly allowed under the IRDAI (Insurance Brokers) Regulations, 2018, and these restriction is enforced to check that the broker remains fully dedicated to serving the interests of policyholders and avoids any conflict of interest.

The primary focus of an insurance broker must remain on: 

• Solicitation of insurance business,

• Client advisory,

• Risk assessment,

• Claims assistance, and

• Other support services related to insurance. 

Any involvement in unrelated business activities—whether financial, commercial, or advisory—is prohibited unless specifically approved by IRDAI. 

Q6 How is the net worth of a Corporate Agent calculated? 

Ans. Net worth is generally calculated as: 

Net Worth = Paid-up Share Capital + Free Reserves – Accumulated Losses – Intangible Assets 

The calculation must be certified by a Chartered Accountant and submitted as part of IRDAI's compliance checks. 

Q7. How should applications for a Certificate of Registration (CoR) under the IRDAI (Registration of Corporate Agents) Regulations, 2015 be submitted?

Ans. All applications must be submitted directly to the Authority through the online mode, not through insurers and the Online Portal for Corporate Agents can be accessed at https://agencyportal.irdai.gov.in/

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