The government has notified the amendments to the Insurance Intermediaries Regulations. As part of this, the maximum number of collaborations between Corporate Agents (CAs) and Insurance Marketing Firms (IMFs) will increase. As a result, policyholders now have access to a broader range of options and insurance plans through various distribution channels.

Corporate agents and the IMF can work with 3 and 2 insurance companies. The Insurance Regulatory and Development Authority of India (IRDAI) has allowed them to increase the partnership limit for life, general and health insurers to nine and six, respectively.

IRDAI says that for corporate agents (composite), the total number of arrangements (life, general and health) must be at most 27.

According to the IRDAI order, “To enable policyholders/prospective customers to have a wider choice and access to insurance through various distribution channels and to facilitate insurance reaching the last mile, Corporate Agents (CA) and Insurance Marketing Firms (IMF) have been added. Now, CA can work with nine insurance companies (previously three insurance companies), and IMF can work with six insurance companies (once two insurance companies) in each life, general and health distribution of their insurance products through three business lines. The IMF’s domain business has also expanded to cover the entire states in which they are registered.

Corporate entities represent insurance companies and sell their policies. Usually, they are in a specific business and sell policies to existing customers. The IMF is also a distribution channel for insurance. The move is aimed at increasing insurance penetration in the country.