Insurance regulator has rejected application of 37 insurance brokers.
IRDA has renewed licenses of 247 insurance brokers. The licenses were approved on basis of Insurance Broker Regulation Act. The insurance regulator data shows that out of 349 applications 300 applications came from direct insurance brokers, 43 from composite insurance broker and 6 applications from reinsurance brokers.
Direct brokers represent end users (insurance buyers) whereas reinsurance brokers represent primary insurance companies to re-insurer companies. Composite brokers can act as direct as well as re-insurance brokers.
IRDA has rejected applications of 37 insurance brokers including Heritage Insurance Broker as they have failed to comply with the norms of Insurance Brokers Regulation. Heritage Insurance Broker had earlier filed a writ petition before Calcutta High Court which was dismissed. Meanwhile, IRDA has also put renewal of 51 applications under scrutiny.
10 Insurance Brokers including Karvy, Amidtown, Saviour, Marsh Book, BAP, Dauphin, Enam, Fusion, Sun and Hariyali have sought to surrender their license. IRDA has also refused to grant any renewal to 6 insurance brokers including Willis India, Reliable, Athena, Samriddhi, Brooklyn and Quasar. Here’s the List of Insurance Brokers. A committee on insurance broking headed by Suresh Mathur has recently submitted their report recommending IRDA that the banks should be allowed to act as insurance brokers.