Insurance marketing firm (IMF)

What is an insurance marketing firm?

An insurance marketing firm (IMF) is a small, locally focused distribution business registered with IRDAI. It can sell insurance from several insurers through its own employees, called insurance sales persons, and can also distribute other regulated financial products such as mutual funds and pension products through licensed staff. IRDAI created the category in 2015 so that local entrepreneurs could build a one-stop financial shop in a district without the capital needed for a broking licence.

The IMF sits between an individual agent and a broker. Like a corporate agent it represents the insurers it ties up with, but its geography is limited to the districts in its registration, and its product scope is mostly retail.

How an IMF works in India

The rules are in the IRDAI (Registration of Insurance Marketing Firm) Regulations, 2015, as amended in 2022 and July 2026, and are summarised on IRDAI's policyholder portal:

• Area of operation. Registration covers up to three districts within one state. If more than one district is chosen, at least one must be an aspirational district on the NITI Aayog list. An IMF may source customers from anywhere in India, but the business is logged with the insurer's office in its area of operation.
• Tie-ups. Up to six life insurers, six general insurers and six health insurers at a time, with intimation to IRDAI. (The limit was raised from two per line in 2022.)
• Net worth. ₹5 lakh if the IMF opts for a single aspirational district, and ₹10 lakh in other cases, maintained at all times.
• Insurance products. All individual and retail products, including crop insurance for non-loanee farmers. For MSMEs only a defined set (property, group personal accident, group health, group savings-linked and term cover).
• People. Selling staff are insurance sales persons (ISPs), who must have passed Class 12, completed the IMF training, passed the examination conducted by the Insurance Institute of India and live in the state of registration. Financial services executives sell non-insurance products and need the relevant regulator's licence. One person can hold both roles.

2026 changes. Under the IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026, IMF registration no longer needs renewal every three years; it continues while the annual fee (the higher of ₹10,000 or 0.04% of commission and other receipts) is paid. Existing IMFs must apply by email for a fresh certificate before 31 January 2027. Principal officers and ISPs must complete at least 25 hours of training every three years. From 1 January 2027 every policy must show the name and functional identity of the ISP or other person who sold it. IMFs must also show insurance intermediation revenue as a separate schedule in their annual accounts.

What an IMF means for distribution

• It is a route for agents to become entrepreneurs. A successful agent or small financial adviser who wants to sell more than one insurer's products, and hire a small team, can do so through an IMF without the capital and staffing of a broker. For insurers, IMF tie-ups can bring in experienced local sellers who would never join as tied agents.
• The aspirational district rule is a design choice. The lower net worth for a single aspirational district, and the requirement to include one when choosing more than one district, push IMFs towards under-served areas. An IMF strategy works best when the promoter already has a network in that district.
• Small teams need insurer support. IMFs rarely have training, technology or claims teams of their own. Insurers that give IMFs product training, a simple issuance portal and a named claims contact are better placed to win more of their shelf.
• Multiple products help retention. Because an IMF can also sell mutual funds, pension products and post office schemes, it can keep a household relationship going between insurance renewals.
• Future status is open. IRDAI's September 2026 consultation paper proposes folding IMFs, with corporate agents, brokers, web aggregators, common service centres and motor dealers, into a single Insurance Distribution Entity licence with very low entry capital and an option of open architecture. If adopted, the distinctive IMF limits on tie-ups and districts would change. Comments are due by 25 October 2026.

IMF vs corporate agent vs individual agent