Health Insurance Broker
The demand for health insurance products has skyrocketed post-covid era. Hundreds of companies are rolling out lucrative insurance products, reducing medical expenses significantly, to close more deals than ever. Such insurances ensure recurring income, reinforcing a stable revenue source. However, such benefits are challenging to come by due to sheer competition among peers.
That’s where the concept of hiring an insurance broker comes into play. The health insurance broker essentially aids insurance companies on many fronts, including lead generation, product marketing, risk management, etc. They fall under the IRDA’s ambit and do what is cited in the governing legislation to stay compliant during their tenure. With that being said, let’s understand the significance and benefits of health insurance brokers in detail.
What is the role of a Health Insurance Broker?
A Health Insurance Broker works under the IRDA’s guidelines and performs numerous jobs, such as:
- Helping customers understand the policy’s significance, benefits, terms, and compliances.
- Suggesting customers with tailored insurance solutions aligning with their needs
- Risk management
- Assistance in closing the deal
- Helping companies access new markets
A certified Health Insurance Broker must have a firm grasp of how insurance products work and their nitpicks. It is important to note that these brokers work on commission or remuneration as mutually agreed with the companies. The commission is credited after the closure of the deal.
Benefits of becoming a certified health insurance broker
The soaring demand for affordable treatment and medicines has taken the demand for health insurance products to the next level. Today, the health insurance sector is served by hundreds of entities offering a wide range of insurance products.
However, due to stiff competition, most companies find it hard to carve a formidable position, resulting in low sales and market reach. This reinforces an unprecedented opportunity for those seeking stable and growth-oriented careers. Being a certified health insurance broker will help you reap benefits like:
- Superior income in the form of commission or remuneration thanks to rising demand for brokers among peers
- Stable career offering growth and solidity
- A great scope of endless learning, paving a path to success
- Scope of honing marketing and negotiation skills
- Low risk of being jobless thanks to burgeoning demands for insurance products
Prerequisites for becoming a certified Health Insurance Broker in India
Those seeking to become a certified health insurance broker in India must abide by the following conditions:
Educational Qualification: The applicant must have completed the high school diploma or equivalent
Professional Training: The applicant must have undergone certified training concerning insurance products and marketing as per theInsurance Regulatory and Development Authority (IRDA).
Licensing Exam: Pass the IRDA licensing examination specifically for health insurance brokers.
Age Requirement: The applicant should not be a minor legally.
Stain-proof legal background: The applicant must have a clear legal background with no pending cases.
Those who are applying as a firm must conform to the given requirements based on the license type:
| Broker Type | Net Owned Fund Requirement | Capital Requirement |
| Direct Broker | Minimum INR 50 lakhs | Minimum INR 75 lakhs |
| Reinsurance Broker | Minimum INR 4 crores | Minimum INR 5 crores |
Documents to Apply for Health Insurance Broker License
1. Completed Application Form (Form B)
2. Certificate of Incorporation (for companies)
3. Memorandum and Articles of Association
4. Net Owned Fund Certificate
5. Capital Requirement Proof (minimum INR 75 lakhs)
6. Details of Principal Officer:
- Qualifications
- Experience Certificate
- Proof of passing the Brokers’ examination
7. Directors and Key Management Personnel Information:
- Identification Proof
- Address Proof
- Qualifications
- Experience Certificates
8. Audited Financial Statements (last three years)
9. Business Plan (detailing operations, revenue model, and target market)
10. Professional Indemnity Insurance Cover
11. No Objection Certificate (NOC) from the existing employer (if applicable)
12. Details of Infrastructure (office space, IT systems, etc.)
13. Declaration Forms:
- No criminal record
- No bankruptcy history
Steps to apply for the health insurance broker license
The broker license shall be granted in two phases viz. Pre-approval registration and broker certification. The former shall be granted by authority after inspecting the underlying criteria and paperwork. The grant of broker certification will only come into effect provided the firm meets norms tied to the pre-approval registration.
To apply for broker registration, you follow the given steps:
Step1: Visit the Official Website:
Head to the Insurance Regulatory and Development Authority (IRDA) portal and create an account after passing the verification.
Step 2: Fill out the relevant form
Head to the services option to select the prescribed form. But before you do that, refer to the table below to know which form you need to apply.
| Broker Type | Net Owned Fund Requirement | Capital Requirement | Form Number |
| Direct Broker | Minimum INR 50 lakhs | Minimum INR 75 lakhs | Form B |
| Reinsurance Broker | Minimum INR 4 crores | Minimum INR 5 crores | Form D |
Step 3: Attach Required Documents:
Refer to the above section to learn more about the documentation applied. It is noteworthy that a document plays a vital role in the success of a registration process. So, keeping them legitimate and free from error is paramount.
Step 4: Inspection
Once submitted, the special department of IRDA will inspect your application and attached documents for compliance and accuracy. The application may be repealed or revoked if the authority finds any anomalies document-wise.
Step 5: Grant of Certificate
If your application adheres to all the norms, IRDA will grant the certificate and enable you to work as a certified health insurance broker.
Conclusion
Turning into a health insurance broker is a big commitment to customer satisfaction. There is a great demand for brokers in the insurance sector who can turn a prospect into a buying customer, boosting sales for the clients. To be a certified broker, you need to comply with various conditions as cited above. If you are looking for an alternate and seamless way of license procurement, allow Adviso to be your licensing partner.
Adviso sits at the forefront of the licensing regime, fostering a wide portfolio of services tailored to address diverse needs. From helping firms going global to rendering top-tier compliance services, Adviso serves as a single window for all your regulatory and business woes.
Read Our Article: Procedure For An Insurance Broker License (2024)
