The broker hub
Everything about insurance broking in India: what brokers do, how to get licensed, what it costs, how many there are and how they get paid.
What is an insurance broker?
A broker works for the customer, not the insurer.
Advises
Studies the client’s risks and recommends cover from many insurers.
Places
Negotiates terms and places the policy with one or more insurers.
Supports claims
Helps the client file and pursue claims, and can offer risk management services.
| Broker | Agent | |
|---|---|---|
| Represents | The customer | The insurer(s) it is tied to |
| Insurers | Any insurer | Limited ties per category |
| Licensed by | IRDAI directly | Through the insurer |
| Form | Company, LLP or co-op society | Individual |
| Can charge a fee | Yes, for permitted services | No |
The three kinds of broker
Direct brokers come in three flavours: life, general, or both.
Direct broker
Places insurance for clients with insurers in India. Can also give claims and risk advice.
- Life, General, or Life & General
- – L&G + – General
Reinsurance broker
Places risks that Indian insurers pass on to reinsurers in India and abroad.
- – on the list
Composite broker
Does both: direct broking and reinsurance broking.
- – on the list
How to become a broker
Six steps from idea to licence.
- Set up the entityA company, LLP or co-operative society whose only business is insurance broking.
- Bring in the capital₹75 lakh (direct), ₹4 crore (reinsurance) or ₹5 crore (composite), from promoters’ own funds, not loans.
- Train your Principal Officer and Broker Qualified Persons50 hours of training and the exam conducted by NIA Pune (25 hours if they already hold III, CII, CA, ICSI, ICWA or actuarial qualifications).
- Apply to IRDAIFile the application with the business plan, fee and documents. Fee: â‚ą25,000, â‚ą50,000 or â‚ą75,000 by category.
- Get in-principle approval, then registerPay the first annual fee (â‚ą10,000) within 15 days, place the bank deposit and get professional indemnity cover.
- Start, then pay the annual feeNo more 3-year renewals since 30 July 2026. Pay the higher of ₹10,000 or 1/25th of 1% of last year’s commission and other receipts before 31 January each year. Brokers licensed earlier must apply for a fresh registration by 31 January 2027.
Money needed, by category
From IRDAI’s broker regulations.
How many brokers are there in India?
– on IRDAI’s list dated –.
Where they are based
By registered office. Top: –
Search every broker →How brokers get paid
Today vs IRDAI’s September 2026 proposal.
Today
Each insurer pays commission under its own board-approved policy, inside its overall expense limit (30% of gross written premium for general insurers).
Fees
Brokers may charge the client a fee for permitted services such as claims consultancy and risk management.
Proposed
Fixed caps by product. Brokers would become “distribution entities” with lower caps than agents.
| Product (proposed cap) | Broker | Agent |
|---|---|---|
| Individual health, first year | 15% | 20% |
| Individual health, renewal | 5% | 10% |
| Motor OD, old vehicle | 10% | 15% |
| Motor TP, new vehicle | Nil | 2.5% |
| Retail property, first year | 15% | 20% |
| Marine cargo | 10% | 15% |
| Group health | 2.5% | 5% |
Broker news
Today’s stories on brokers and distribution.
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Resources
Primary sources first.
Questions people ask
Can an individual become a broker?
No. Only a company, LLP, co-operative society or other person IRDAI recognises. An individual can work as the Principal Officer or a Broker Qualified Person.
Which exam do I need?
The broker exam conducted by National Insurance Academy, Pune (or another body IRDAI recognises), after 50 hours of training.
How long is a broker licence valid?
Since 30 July 2026 a registration has no fixed term. It stays in force while the broker pays the annual fee, unless IRDAI suspends or cancels it. Brokers licensed before then must apply for a fresh registration by 31 January 2027 (31 March 2027 with a late fee of â‚ą750).
Can a broker sell life and general insurance?
Yes, with the Direct Broker (Life & General) or Composite category.
Are the new commission caps final?
No. They are proposals in IRDAI’s consultation paper of 23 September 2026.
Sources: IRDAI broker list (list as on –); IRDAI (Insurance Brokers) Regulations 2018 as amended by the Intermediaries (Amendment) Regulations 2026 (30 Jul 2026); IRDAI consultation paper, Box 4A; insurers’ NL-36 disclosures.