Corporate Agents

Who are corporate agents

• Corporate entities represent an insurance company and sell its

policies. Usually they are engaged in a particular business and sell
insurance policies to their existing customers based on the situation.
When a bank becomes the corporate agent of an insurance company
it is referred to as a bancassurance arrangement or partnership.
• Banks offer insurance policies to their customers based on their
knowledge of their situation and needs.
Applicable Regulations

• IRDAI (Licensing Of Corporate Agents) Regulations, 2002

• IRDAI (Registration of Corporate Agents) Regulations, 2015
Eligible Entities

Corporate Agent can be a  

•i.         a firm; or
•ii.       a company formed under the Companies Act, 1956 (1 of 1956); or
•iii.      a banking company as defined in clause (4A) of section 2 of the Act; or
•iv.     a corresponding new bank as defined under clause (d(a)) of sub-section (1) of section 5 of the
Banking Companies Act, 1949 (10 of 1949); or
•v.       a regional rural bank established under section 3 of the Regional Rural Banks Act, 1976 (21
of 1976); or
•vi.     a co-operative society including a co-operative bank, registered under the Co-operative
Societies Act, 1912 or under any law for the registration of co-operative societies; or
•vii.    a panchayat or a local authority; or
•viii.     a Non-Governmental organisation or a micro lending finance organisation covered under the
Co-operative Societies Act, 1912 or a Non Banking Financial Company registered with the Reserve
Bank of India; or
•ix.        any other institution or organisation which on an application to the Authority is specifically
approved by the Authority.
Capital and Net Worth Requirement

• As per the New Regulations, a Corporate Agent exclusively doing

insurance intermediation should have a minimum share capital or
contribution and net worth of Rupees Fifty Lakh and it should be
maintained a net worth of Rupees Fifty Lakh at all times.
Open Architecture Policy

• Corporate Agents could represent one life insurer, one non-life insurer and one
standalone health insurer till 31-3-2015.
• Reg. 3, Corporate Agents may have arrangements with a maximum of three life,
three general and three health insurers to solicit, procure and service their
insurance products corporate insurance agent of life, non-life and health can have
arrangements with a maximum of three companies each to solicit, procure and
service their insurance products, according to new regulations by IRDAI
(Registration of Corporate Agents) Regulations, 2015 2015.  effective 01-04-2016
Types of Corporate Agents

• Types of corporate agents : There are four types, depending on the

class of insurance they are licensed to distribution –
• (i) corporate agent (life)
• ii) corporate agent (general)
• (iii) corporate agent (health), and
• (iv) corporate agent (composite).
Type of Corporate Agents - Role
• A Corporate Agent for a life insurance business can have
arrangements with only three life insurers to advertise, solicit, and
procure different insurance products.
• A Corporate Agent for a general insurance business can have
arrangements with only three general insurers to solicit, advertise,
and procure different types of insurance products on behalf of the
business.
• Corporate agent for health insurance can have arrangements only
with three health insurers to advertise, procure, and service their
products.
Specified Persons under a Corporate Agent

• "Specified Person" means an employee of a Corporate Agent who is

responsible for soliciting and procuring insurance business on behalf
of a corporate agent and shall have fulfilled the requirements of
qualification, training and passing of examination as specified in
regulations.