As per the regulations governing insurance intermediaries, such as -

Insurance Brokers
Corporate Agents
Insurance Web Aggregators and
Insurance Marketing Firms

Insurance brokers are individuals or companies who act as intermediaries between insurance companies and policyholders. They typically offer advice on insurance products and help customers find the best insurance policies to meet their needs. Insurance brokers are required to be licensed by the IRDA and are subject to regulations and guidelines. Governing insurance intermediaries play an important role in the insurance industry by helping customers understand insurance products and find policies that best meet their needs. The IRDA regulates these intermediaries to ensure that they operate ethically and in the best interests of policyholders.

Insurance Agents are individuals who work on behalf of insurance companies to sell insurance policies to customers.
Corporate Agents are companies that have been authorized by insurance companies to sell their products to customers.
An Insurance Web Aggregator is a website that allows customers to compare and purchase insurance policies from various insurance companies. Web aggregators provide a platform for customers to easily compare different policies and choose the one that best meets their needs.
An Insurance Marketing Firm (IMF) is a company that provides marketing and promotional services to insurance companies. IMFs are authorized by insurance companies to promote and sell their products to customers.

You know, insurance web aggregators and insurance marketing firms are two other types of intermediaries in the insurance industry in India. While insurance brokers, agents, and corporate agents directly interact with customers to sell insurance policies, web aggregators provide a platform for customers to compare and purchase policies, and marketing firms provide marketing and promotional services to insurance companies.

An insurance broker company provides valuable advice and guidance to individuals and businesses looking to purchase insurance policies. They have a team of qualified and well-trained staff who partner with insurance companies to provide customers with a wide range of insurance products. Insurance brokers have in-depth knowledge of insurance products and related laws and regulations. They use this knowledge to help clients make informed decisions about their insurance needs. For example, if someone is unsure whether to choose an investment plan or insurance, an insurance broker can provide guidance based on their individual circumstances and financial goals. Same way, if someone is unsure whether to buy a family health insurance policy or an individual health insurance policy, an insurance broker can explain the differences and help the customer choose the policy that best meets their needs.

An insurance broker can be registered as a
Company under the Companies Act, 2013,
A cooperative society registered under the Co-operative Societies Act of 1912, or
Any other law governing the registration of co-operative societies, or
A limited liability partnership (LLP) formed under the LLP Act.

The specific legal structure that an insurance broker chooses to adopt will depend on various factors, such as the nature and scale of their business, the level of liability protection they require, and their tax obligations.

Pre- requirements must be met before going to Register an Insurance Broker Company in India-

Eligibility Criteria: The applicant should be a resident of India and should have completed 18 years of age.
Educational Qualification: The applicant should have at least passed 12th standard from any recognized board or university.
Training: The applicant should have completed a pre-licensing training program approved by the IRDAI. The training program should cover the basics of insurance, laws and regulations related to insurance, and the duties and responsibilities of an insurance broker.
Experience: The applicant should have a minimum of 3 years of experience in the insurance industry.

Guidelines on the Standard Professional Indemnity (PI) Policy for Insurance Brokers, Corporate Agents, Web Aggregators, and Insurance Marketing Firms (IMFs)-

Key features of the Standard PI Policy for intermediaries include:-

Coverage for claims arising from acts of negligence, errors, or omissions in professional services rendered by the intermediary, including advice or recommendations given to clients.
Coverage for claims arising from breaches of professional duty, fiduciary duty, or statutory duty by the intermediary.
Coverage for claims arising from unintentional infringement of intellectual property rights by the intermediary.
Coverage for defense costs incurred in defending against claims covered by the policy.
Limits of liability as per regulatory requirements, which may vary depending on the type and scale of operations of the intermediary.

The guidelines also require intermediaries to disclose certain information, such as their claims history, to insurers while seeking PI coverage. Insurers are required to provide a copy of the policy document to the intermediary, along with any endorsements or changes made to the policy. Overall, the Standard PI Policy guidelines aim to provide a comprehensive and standardized framework for PI coverage for intermediaries and improve transparency and accountability in the insurance sector.

To register an insurance broker company in India, you need to follow the below steps:-

Company Incorporation subject to IRDA NOC for Name: Firstly, you need to incorporate a private limited company or a limited liability partnership (LLP) in India as per the Companies Act, 2013. You can do this by applying online through the Ministry of Corporate Affairs (MCA) website through filing Spice+PART-A & PART-B, INC-33, INC-34, INC-9 & Agile-Pro-S along with all supporting documents like-PAN, ID Proof, address proof, DIR-2 and other documents required for Registration as a Private Limited Company.
Capital Requirement: The capital requirement for insurance broker company formation in India varies depending on the type of insurance broker you want to register as. As per the IRDAI (Insurance Regulatory and Development Authority of India) guidelines, the minimum capital requirement is as follows:

General Insurance Broker: The minimum paid-up capital required for a general insurance broker company is Rs. 50 lakhs.

Life Insurance Broker: The minimum paid-up capital required for a life insurance broker company is Rs. 10 lakhs.

Apply for Insurance Broker License post Registration as A private Limited Company : Company need to apply for a license to act as an insurance broker with the Insurance Regulatory and Development Authority of India (IRDAI). To apply, Company need to submit the application form along with the necessary documents and fees online.
IRDAI Approval: Once company have submitted the application, the IRDAI will review the application and conduct a background check on the company and its directors. If everything is found to be in order, the IRDAI will issue a license to the company to act as an insurance broker.
Compliance Requirements: Company required to comply with various regulatory requirements set by the IRDAI, such as maintaining proper books of accounts, submitting regular reports to the IRDAI, and undergoing regular inspections by the IRDAI.

How to apply for IRDA Licences post Registration of Company-

To Act as an insurance broker in India, Company need to obtain a license from the Insurance Regulatory and Development Authority of India (IRDAI). The license is issued under the provisions of the Insurance Regulatory and Development Authority Act, 1999, and the Insurance Regulatory and Development Authority (Insurance Brokers) Regulations, 2018.

Application for the license, Company need to submit the following documents along with the application form and fees:-

Memorandum and Articles of Association of the company (MOA & AOA)
Board resolution authorizing the company to act as an insurance broker
Declaration form for the directors and key persons of the company
Business plan of the insurance broker Company
Proof of payment of the registration fee and security deposit
Any other documents or information as may be required by the IRDAI.

Once Company submitted the application, the IRDAI will review the application and conduct a background check on the company and its directors. If everything is found to be in order, the IRDAI will issue a license to the company to act as an insurance broker.

IRDAI License is valid for three years and needs to be renewed thereafter. Further, the IRDAI may cancel or suspend the license if the insurance broker violates any of the regulatory requirements or engages in any fraudulent activities. It is important to note that the registration process for an insurance broker company can be complex and time-consuming. Compliance Calendar assistance will be required, a firm has rich experience in the IRDAI Compliances & approvals area to guide you through the process. It is further important to note that the IRDAI has the discretion to reject an application if it deems that the applicant does not meet the eligibility criteria or does not have the required qualifications, experience or capital.

How to proceed for Renewal of Licences ?

The process for renewing an IRDA (Insurance Regulatory and Development Authority) license may vary depending on the specific license you hold and the state or region where you are based. However, in general, the following steps involved-

Review the renewal requirements for your specific license. This information can usually be found on the IRDA website or by contacting the IRDA directly.
Depending on your license type, you may need to complete a certain number of training or educational hours before you can renew your license. Ensure that you complete any necessary coursework before applying for renewal.
Prepare all required documentation such as renewal application form, payment of fees, proof of training, and other supporting documents.
Submit the completed renewal application form and all required documentation to the IRDA. You may be able to submit your application online, by mail, or in person at an IRDA office.
Wait for your renewal application to be processed and approved by the IRDA. This can take several weeks, so be sure to submit your application well in advance of your license expiration date.
Once your renewal application is approved, you will receive a renewed license from the IRDA.

It's very important to note that failing to renew the existing license of IRDAI on time can result in penalties or the revocation of the license. Therefore, Consult with Compliance Calendar LLP for retainership Services, to make sure to keep track of the license expiration date and start the renewal process well before that date to avoid any issues.