Every channel that brings insurance to customers in India, from individual agents to banks, brokers and digital platforms. This topic has 21 entries.
Distribution and intermediariesInsurance agentAn insurance agent is an individual appointed by an insurer under Section 42 of the Insurance Act to solicit and service its policies, paid by commission and tied to one insurer per line.Distribution and intermediariesCorporate agentA corporate agent is a company, bank, NBFC or other entity registered with IRDAI to sell insurance through its certified staff, with tie-ups of up to nine insurers in each line.Distribution and intermediariesBancassuranceBancassurance is the sale of insurance through a bank's branches, apps and customer base, with the bank registered with IRDAI as a corporate agent for one or more insurers.Distribution and intermediariesInsurance brokerAn insurance broker is an IRDAI-registered firm that acts for the customer, compares and places cover with any insurer, and earns commission from insurers or fees for risk advice.Distribution and intermediariesPOSP (point of sales person)A POSP (point of sales person) is an individual, at least 18 and Class 10 pass, who after 15 hours of training sells simple pre-approved insurance products for one insurer or intermediary.Distribution and intermediariesInsurance web aggregatorAn insurance web aggregator is an IRDAI-registered company that runs a website comparing insurers' products, passes leads to insurers and can sell policies online or by phone.Distribution and intermediariesInsurance marketing firm (IMF)An insurance marketing firm (IMF) is an IRDAI-registered local distributor that sells retail insurance from up to six insurers per line, and other financial products, within chosen districts.Distribution and intermediariesCommon Service Centres (CSC) in insuranceCommon Service Centres (CSCs) sell and service simple insurance in villages through village level entrepreneurs, under a government SPV registered with IRDAI under 2019 regulations.Distribution and intermediariesMotor insurance service provider (MISP)A motor insurance service provider (MISP) is a vehicle dealer appointed by an insurer or intermediary to sell and service motor insurance for the vehicles it sells, under IRDAI's 2017 guidelines.Distribution and intermediariesBima VahakBima Vahak is an IRDAI-created, women-focused village distribution channel in which local individuals or entities sell and service Bima Vistaar and other simple covers for insurers.Distribution and intermediariesAgency channelThe agency channel is an insurer's network of individual tied agents, organised under branches and sales managers, that recruits, trains and supports agents to sell and service policies.Distribution and intermediariesDirect and digital channelThe direct and digital channel is insurance an insurer sells itself, through its own website, app, call centre or salaried staff, with no agent or intermediary and so no commission.Distribution and intermediariesInsurtechInsurtech is the use of technology to design, sell, price or service insurance, and the firms that do it, from digital brokers and aggregators to digital insurers and software providers.Distribution and intermediariesOpen architecture in bancassuranceOpen architecture in bancassurance lets a bank or other corporate agent sell products of several insurers in each line, up to nine per line in India since 2022, instead of one partner.Distribution and intermediariesIC-38 and agent licensingIC-38 is the common name for the pre-recruitment exam and course that a person must pass, after insurer-run training, before an insurer can appoint them as an insurance agent in India.Distribution and intermediariesInsurance commissionInsurance commission is the payment an insurer makes to an agent or intermediary for selling and servicing a policy, set by insurers' board policies within IRDAI expense limits since 2023.Distribution and intermediariesAgent recruitmentAgent recruitment is the process by which insurers and their managers find, select, train, test and appoint new insurance agents, and is judged by how many recruits go on to sell and stay.Distribution and intermediariesWomen in insurance distributionWomen in insurance distribution means women working as agents, POSPs, Bima Vahaks and sales staff; they were about 29% of India's life insurance agents in 2022, a share schemes now aim to raise.Distribution and intermediariesMDRT (Million Dollar Round Table)MDRT (Million Dollar Round Table) is a global association of life insurance and financial advisers; membership requires a high annual production threshold set in local currency for each country.Distribution and intermediariesMis-sellingMis-selling is selling an insurance policy that does not suit the buyer, or selling it on false, incomplete or pressured terms, such as forced bundling with a loan or misstated returns.Distribution and intermediariesTier 2 and Tier 3 insurance distributionTier 2 and Tier 3 insurance distribution is selling and servicing insurance in India's smaller cities, towns and rural areas, where penetration is low and costs per policy run higher.