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Transcript
Insurance Marketing Firm (IMF) “ A new Insurance distribution channel for India” 25-02-2013 Insurance Marketing Firm (IMF) About IMF This will enable an insurance marketing firm to sell insurance products of multiple insurance companies and also other financial products, such as mutual funds and National Pension System (NPS), which have been approved by financial sector regulators. Why IMF ? As of now, the insurance broking model allows multiple tie-ups with insurance companies. However, many brokers don’t prefer to sell insurance to retail customers as it entails heavy marketing expenses. Instead, they focus on selling large ticket non-life products like group health insurance, motor insurance, liability insurance etc. to corporate. Also, both agency and broking regulation do not allow distribution channels to recover marketing expenses from insurers. Insurance Marketing Firm (IMF) Scope of IMF Within insurance marketing firms, there will be two kinds of licensed individuals: Insurance Sale person (ISP) Financial Service Executive (FSE) • Solicitation of insurance policies •Passed Class 10 and cleared the insurance brokers examination. •Agent - clear the broker examination and surrender agency license. • Carrying out advisory and sales of other financial products like mutual funds and pension products of PFRDA. Need certification from regulatory bodies •Maintain net worth of 10 lakhs at all times •Need professional indemnity policy The Insurance Marketing Firm shall designate a Principal Officer who shall be the Executive Head of the Insurance Marketing Firm and who shall be responsible for regulatory compliance to the Authority on all matters relating to these Regulations Remuneration applicable to the IMF • The Insurer shall make all remuneration for the Insurance Sales undertaken by an Insurance Marketing Firm, to the concerned Insurance Marketing Firm only, and NOT to any other sales /marketing intermediary. • The remuneration payable to Insurance Marketing Firm by the Insurer, for the solicitation of policies by the ISP shall not exceed the remuneration as specified by the Authority from time to time. • In addition the Insurance Marketing Firm can be paid a fee by the insurer, for the following services i. Marketing Expenses ii. Expenses towards infrastructure iii. Performance based incentives • The Insurance Marketing Firm shall also be entitled to receive the fees for undertaking other insurance & non-insurance services that will be either mutually agreed between the Insurance Marketing Firm and the Insurance Company or will be those governed by the stipulation of other regulatory/ statutory authorities. • The settlement of accounts by insurers in respect of remuneration of Insurance Marketing Firm shall be done on a monthly basis and it must be ensured that there is no cross settlement of outstanding balances. IMF in conclusion……………… •This is an innovative step which will bring the customer to the doorstep of the insurer •This will encourage entrepreneurial spirits •This will enable insurance companies to increase their reach to rural and Semi urban areas •This will improve cross selling •They would be able to sell products of 2 life , 2 non life and 2 health companies and also distribute other financial instruments. •More opportunity to cover the uninsured population Thank you 25-02-2013