How many insurer tie-ups are permitted for IMF or Broker Company ?

How many insurer tie-ups are permitted for IMF or Broker Company ?. In a regulated insurance ecosystem in India, distribution channels have been a major part in connecting insurers to customers across India. With increasing demand for insurance penetration, IRDAI (Insurance Regulatory and Development Authority of India) has established three primary licensing models to authorize entities for distribution:

Insurance Marketing Firms or IMF Company

Corporate Agents

Insurance Brokers

Each model is tailored to suit specific business scales, operational goals, and regulatory capacities. Moreover, with the advent of simplified company structures such as One Person Companies (OPCs), there is growing interest in whether such entities can participate in this regulated space. This article offers a complete view of all regulatory requirements, model comparisons, operational scope, and real-world examples.

Startups & OPCs with limited capital: Begin with IMF registration such as: NISHITH IMF ADVISORY (OPC) PRIVATE LIMITED & ANKURA FINANCIAL SOLUTIONS INSURANCE MARKETING (OPC).

Growing companies with broader operations: Choose Corporate Agency.

Large financial intermediaries: Opt for Insurance Broker license to gain maximum flexibility and revenue potential.

Learn more about How to Register an IMF with the IRDIA
Regulatory Provisions under IRDAI
IRDAI regulates the conduct, eligibility, structure, and compliance of all insurance intermediaries under:

Insurance Act, 1938

IRDAI Act, 1999

IRDAI (Registration of IMF) Regulations, 2015 (as amended)

IRDAI (Registration of Insurance Brokers) Regulations, 2018

IRDAI Guidelines for Corporate Agents

The regulatory objective is to promote transparency, ensure solvency, enhance insurance access, and curb mis-selling. All three models are subject to periodic audits, capital certifications, training norms, and licensing renewals.
Overview of Insurance Distribution Models
Insurance Marketing Firm (IMF)
An IMF is the most basic licensed intermediary authorized to solicit insurance products from a limited number of insurers. It is suitable for small setups and localized retail operations.
Corporate Agent
Corporate Agents are entities permitted to represent multiple insurers but limited to specific tie-up caps. They are ideal for mid-sized businesses such as banks, NBFCs, and fintech firms.
Insurance Broker
Insurance Brokers represent clients not insurers and are allowed to partner with any insurer across segments. They operate at the highest level of freedom with no restriction on tie-ups.
Detailed Regulatory Requirements
Capital Requirements

Model

Capital Requirement

IMF

Minimum Net Worth: Rs. 10 lakhs

Corporate Agent

Minimum Paid-up Capital: Rs. 50 lakhs

Insurance Broker

Rs. 75 lakhs (Direct) to Rs. 5 crores

IMFs require lesser capital, making them suitable for individual entrepreneurs or small firms. Brokers and Corporate Agents require substantial capitalization reflecting the scale of operations.
Principal Officer (PO) Eligibility

The Principal Officer (PO) must possess relevant experience in the insurance or financial services sector, with a particular focus on operations or compliance functions. The experience should also encompass capabilities in managing business activities including sales and marketing. The final determination of the PO’s eligibility and acceptance of their profile is entirely at the discretion of IRDAI and subject to its approval process.

Must undergo and pass IRDAI-approved training and certification exams (min. 50 hours for IMFs).

PO must be fit and proper, with no criminal or regulatory disqualifications.

Insurance Sales Person (ISP) Requirements
"Insurance Sales Person" (ISP) is an individual employed by an Insurance Marketing Firm to solicit or procure insurance products.
Applicable for IMF and Corporate Agent models:

Must be resident in the district of operation.- “Aspirational District” means a district designated as such by the NITI Aayog, Government of India or any other economically backward district, as may be recognized by the Authority

Must be certified after completing IRDAI-approved training.

Must be employed with a fixed minimum salary.

Tie-Up Rules
Each insurance distribution model including Insurance Marketing Firm (IMF), Corporate Agent, and Insurance Broker, are governed by specific limits on the number of insurers with whom the entity may tie up. These limits are prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) to ensure structured distribution and accountability.
Permissible Tie-Ups by Model

Model

Maximum Insurer Tie-Ups Allowed

IMF

6 Insurers:• 2 Life Insurers• 2 General Insurers• 2 Health Insurers

Corporate Agent

Up to 27 insurers across Life, General, and Health segments (subject to IRDAI approval)

Insurance Broker

Unlimited tie-ups across all categories of insurers

Special Provisions for IMF
Optional Tie-Ups with Government Insurers:  In addition to the permissible two general insurers, an IMF may also tie up with the following government-backed institutions:

Agriculture Insurance Company of India Ltd. (AIC)

Export Credit Guarantee Corporation Ltd. (ECGC)

These optional tie-ups allow IMFs to expand their offering of government-backed products such as crop insurance and credit insurance without breaching the core 6-insurer cap.
Change in Insurer Engagement
Any modification to existing tie-ups whether cancellation, termination, or discontinuity must adhere to the following:

The terms of the agreement between the IMF and the insurer must include servicing provisions for existing policyholders, ensuring uninterrupted customer support.

The Insurance Marketing Firm is required to intimate IRDAI of any such changes in tie-ups using the format prescribed by the Authority.

Prior arrangements must be made for graceful transition of servicing responsibilities, particularly in case of policy maturities, claims, or ongoing support.

Scope of Operations

IMF: Retail-focused solicitation and servicing for tied-up insurers only.

Corporate Agent: Broader distribution with servicing, but still tied to approved insurers.

Broker: Can represent clients independently, handle corporate/retail accounts, claims, and risk management.

Comparative Analysis of All Three Models

Criteria

IMF

Corporate Agent

Insurance Broker

Capital Required

Rs. 10 Lakhs

Rs. 50 Lakhs

Rs. 75 Lakhs–5 Crores

Insurer Tie-Ups

Max 6

Up to 27

Unlimited

Serves Clients or Insurers

Insurers

Clients

Scope of Products

Limited

Medium

Full Spectrum

Claims Handling

Basic

Yes

Comprehensive

Compliance Burden

Low

Moderate

High

OPC Eligibility Under IRDAI Intermediary Models
IRDAI permits participation of different legal entity types for registration as insurance intermediaries. However, the eligibility of One Person Companies (OPCs) is limited due to governance, capital adequacy, and compliance considerations as:-

Model

OPC Eligibility

Insurance Marketing Firm (IMF)

Permitted

Corporate Agency

Not Permitted

Insurance Broker

Not Permitted

Insurance Marketing Firm (IMF): OPCs are eligible to apply under the IMF model, provided they meet all applicable requirements, including the appointment of a qualified Principal Officer, maintenance of minimum net worth of Rs.10 lakh, and compliance with IRDAI regulations regarding insurer tie-ups, training, and operational infrastructure.

Corporate Agency & Insurance Broker: OPCs are not eligible under these models due to higher capital requirements, governance standards (including a minimum number of directors), and regulatory expectations for broader operational and risk management capacity.

Note: For Corporate Agent or Broker licenses, one must convert into a Private or Public Company first.
Which Insurance Intermediary Model is Right for You?
Selecting the appropriate IRDAI-licensed model depends on your business objectives, available capital, client base, and regulatory readiness. Below is a simplified guide to help identify the most suitable insurance distribution model based on your organizational goals:
Model Selection Guide
Key Factors to Consider Before Choosing a Model

Capital Availability: Ensure your business meets the minimum capital/net worth requirement for the chosen model (Rs.10 lakh for IMF, Rs.50 lakh for Corporate Agent, Rs.75 lakh–Rs.5 crore for Brokers).

Type of Clientele:

Retail only: IMF or Corporate Agency

Retail + Corporate: Insurance Broke

Range of Products:

Limited product basket: IMF

Broader range across life, general, and health: Corporate Agency

Full spectrum with advisory: Broker

Regulatory Capacity: Assess your ability to meet compliance obligations, conduct training, and maintain reporting standards per IRDAI norms.

How Compliance Calendar LLP Assists You with IRDAI Approvals
Navigating the IRDAI regulatory framework requires a deep understanding of licensing requirements, documentation protocols, and eligibility norms. Compliance Calendar LLP offers comprehensive, end-to-end support to individuals and organizations aiming to register under various IRDAI intermediary models such as Insurance Marketing Firms (IMFs), Corporate Agents, and Insurance Brokers.
Learn more about IRDIA Registered Insurance Brokers in India
Whether you are:

An individual or OPC planning to start as an IMF,

A fintech or NBFC expanding into insurance distribution through Corporate Agency,

Or a full-scale advisory or consulting firm pursuing a Broker license,

Compliance Calendar ensures that your application is structured, compliant, and strategically aligned with IRDAI expectations with:-

Experienced team of Company Secretaries, Chartered Accountants, and Legal Professionals

Successfully handled multiple IRDAI registrations across India

Transparent pricing and structured deliverables

Customized support for startups, OPCs, NBFCs, and corporates

In a regulated insurance ecosystem in India, distribution channels have been a major part in connecting insurers to customers across India. With increasing demand for insurance penetration, IRDAI (Insurance Regulatory and Development Authority of India) has established three primary licensing models to authorize entities for distribution:

Insurance Marketing Firms or IMF Company
Corporate Agents
Insurance Brokers

Startups & OPCs with limited capital: Begin with IMF registration such as: NISHITH IMF ADVISORY (OPC) PRIVATE LIMITED & ANKURA FINANCIAL SOLUTIONS INSURANCE MARKETING (OPC).
Growing companies with broader operations: Choose Corporate Agency.
Large financial intermediaries: Opt for Insurance Broker license to gain maximum flexibility and revenue potential.

Learn more about How to Register an IMF with the IRDIA

Regulatory Provisions under IRDAI

IRDAI regulates the conduct, eligibility, structure, and compliance of all insurance intermediaries under:

Insurance Act, 1938
IRDAI Act, 1999
IRDAI (Registration of IMF) Regulations, 2015 (as amended)
IRDAI (Registration of Insurance Brokers) Regulations, 2018
IRDAI Guidelines for Corporate Agents

Overview of Insurance Distribution Models

Insurance Marketing Firm (IMF)

An IMF is the most basic licensed intermediary authorized to solicit insurance products from a limited number of insurers. It is suitable for small setups and localized retail operations.

Corporate Agent

Corporate Agents are entities permitted to represent multiple insurers but limited to specific tie-up caps. They are ideal for mid-sized businesses such as banks, NBFCs, and fintech firms.

Insurance Broker

Insurance Brokers represent clients not insurers and are allowed to partner with any insurer across segments. They operate at the highest level of freedom with no restriction on tie-ups.

Detailed Regulatory Requirements

Capital Requirements

Model	Capital Requirement
IMF	Minimum Net Worth: Rs. 10 lakhs
Corporate Agent	Minimum Paid-up Capital: Rs. 50 lakhs
Insurance Broker	Rs. 75 lakhs (Direct) to Rs. 5 crores

IMFs require lesser capital, making them suitable for individual entrepreneurs or small firms. Brokers and Corporate Agents require substantial capitalization reflecting the scale of operations.

Principal Officer (PO) Eligibility

The Principal Officer (PO) must possess relevant experience in the insurance or financial services sector, with a particular focus on operations or compliance functions. The experience should also encompass capabilities in managing business activities including sales and marketing. The final determination of the PO’s eligibility and acceptance of their profile is entirely at the discretion of IRDAI and subject to its approval process.
Must undergo and pass IRDAI-approved training and certification exams (min. 50 hours for IMFs).
PO must be fit and proper, with no criminal or regulatory disqualifications.

Insurance Sales Person (ISP) Requirements

"Insurance Sales Person" (ISP) is an individual employed by an Insurance Marketing Firm to solicit or procure insurance products.

Applicable for IMF and Corporate Agent models:

Must be resident in the district of operation.- “Aspirational District” means a district designated as such by the NITI Aayog, Government of India or any other economically backward district, as may be recognized by the Authority
Must be certified after completing IRDAI-approved training.
Must be employed with a fixed minimum salary.

Tie-Up Rules

Each insurance distribution model including Insurance Marketing Firm (IMF), Corporate Agent, and Insurance Broker, are governed by specific limits on the number of insurers with whom the entity may tie up. These limits are prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) to ensure structured distribution and accountability.

Permissible Tie-Ups by Model

Model	Maximum Insurer Tie-Ups Allowed
IMF	6 Insurers:• 2 Life Insurers• 2 General Insurers• 2 Health Insurers
Corporate Agent	Up to 27 insurers across Life, General, and Health segments (subject to IRDAI approval)
Insurance Broker	Unlimited tie-ups across all categories of insurers

Special Provisions for IMF

Optional Tie-Ups with Government Insurers: In addition to the permissible two general insurers, an IMF may also tie up with the following government-backed institutions:

Agriculture Insurance Company of India Ltd. (AIC)
Export Credit Guarantee Corporation Ltd. (ECGC)

These optional tie-ups allow IMFs to expand their offering of government-backed products such as crop insurance and credit insurance without breaching the core 6-insurer cap.

Change in Insurer Engagement

Any modification to existing tie-ups whether cancellation, termination, or discontinuity must adhere to the following:

The terms of the agreement between the IMF and the insurer must include servicing provisions for existing policyholders, ensuring uninterrupted customer support.
The Insurance Marketing Firm is required to intimate IRDAI of any such changes in tie-ups using the format prescribed by the Authority.
Prior arrangements must be made for graceful transition of servicing responsibilities, particularly in case of policy maturities, claims, or ongoing support.

Scope of Operations

IMF: Retail-focused solicitation and servicing for tied-up insurers only.
Corporate Agent: Broader distribution with servicing, but still tied to approved insurers.
Broker: Can represent clients independently, handle corporate/retail accounts, claims, and risk management.

Comparative Analysis of All Three Models

Criteria	IMF	Corporate Agent	Insurance Broker
Capital Required	Rs. 10 Lakhs	Rs. 50 Lakhs	Rs. 75 Lakhs–5 Crores
Insurer Tie-Ups	Max 6	Up to 27	Unlimited
Serves Clients or Insurers	Insurers	Insurers	Clients
Scope of Products	Limited	Medium	Full Spectrum
Claims Handling	Basic	Yes	Comprehensive
Compliance Burden	Low	Moderate	High

OPC Eligibility Under IRDAI Intermediary Models

IRDAI permits participation of different legal entity types for registration as insurance intermediaries. However, the eligibility of One Person Companies (OPCs) is limited due to governance, capital adequacy, and compliance considerations as:-

Model	OPC Eligibility
Insurance Marketing Firm (IMF)	Permitted
Corporate Agency	Not Permitted
Insurance Broker	Not Permitted

Insurance Marketing Firm (IMF): OPCs are eligible to apply under the IMF model, provided they meet all applicable requirements, including the appointment of a qualified Principal Officer, maintenance of minimum net worth of Rs.10 lakh, and compliance with IRDAI regulations regarding insurer tie-ups, training, and operational infrastructure.
Corporate Agency & Insurance Broker: OPCs are not eligible under these models due to higher capital requirements, governance standards (including a minimum number of directors), and regulatory expectations for broader operational and risk management capacity.

Note: For Corporate Agent or Broker licenses, one must convert into a Private or Public Company first.

Which Insurance Intermediary Model is Right for You?

Selecting the appropriate IRDAI-licensed model depends on your business objectives, available capital, client base, and regulatory readiness. Below is a simplified guide to help identify the most suitable insurance distribution model based on your organizational goals:

Model Selection Guide

Key Factors to Consider Before Choosing a Model

Capital Availability: Ensure your business meets the minimum capital/net worth requirement for the chosen model (Rs.10 lakh for IMF, Rs.50 lakh for Corporate Agent, Rs.75 lakh–Rs.5 crore for Brokers).
Type of Clientele:

Retail only: IMF or Corporate Agency
Retail + Corporate: Insurance Broke

Range of Products:

Limited product basket: IMF
Broader range across life, general, and health: Corporate Agency
Full spectrum with advisory: Broker

Regulatory Capacity: Assess your ability to meet compliance obligations, conduct training, and maintain reporting standards per IRDAI norms.

How Compliance Calendar LLP Assists You with IRDAI Approvals

Navigating the IRDAI regulatory framework requires a deep understanding of licensing requirements, documentation protocols, and eligibility norms. Compliance Calendar LLP offers comprehensive, end-to-end support to individuals and organizations aiming to register under various IRDAI intermediary models such as Insurance Marketing Firms (IMFs), Corporate Agents, and Insurance Brokers.

Learn more about IRDIA Registered Insurance Brokers in India

Whether you are:

An individual or OPC planning to start as an IMF,
A fintech or NBFC expanding into insurance distribution through Corporate Agency,
Or a full-scale advisory or consulting firm pursuing a Broker license,

Compliance Calendar ensures that your application is structured, compliant, and strategically aligned with IRDAI expectations with:-

Experienced team of Company Secretaries, Chartered Accountants, and Legal Professionals
Successfully handled multiple IRDAI registrations across India
Transparent pricing and structured deliverables
Customized support for startups, OPCs, NBFCs, and corporates