An Insurance Marketing Firm is an insurance entity that provides services that go beyond soliciting and procuring insurance services. Because of that, it is the favourite insurance entity for most entrepreneurs. However, is it the only reason? Or, are there benefits of incorporating an IMF? This article shines a light on that.
There was a time when only an insurance agent existed. Or, it was only an insurance agent that only grabbed people’s attention.
However, as time passed and the insurance domain began to garner people’s and the government’s attention, other insurance entities emerged. One of those infrastructures is the Insurance Marketing Firm. Read Other Useful Content: Prepaid Wallet License
Often abbreviated to only IMF, an insurance marketing firm is an insurance entity that provides the following services:
- Soliciting and procuring insurance policies,
- Rendering Insurance services of other intermediaries, and
- Marketing financial services with the accreditation of other government bodies
Due to these diversified facilities, starting an Insurance Marketing Firm in India is a prudent business decision.
Let’s now look at the benefits of starting an IMF in India.
Providing multiple services
A marketing firm for insurance policies doesn’t have restrictions on the number of services it can provide. One can split the types of facilities that an IMF renders into three categories:
- Selling insurance services of the insurer
- Rendering insurance services to the insured
- Marketing insurance products accredited by governmental authorities
When one takes into account the diverse nature of these services, they can realize two things:
- The market-base of the services naturally increases, and
- People’s trust in the IMF further enhances.
Establishing strategic alliances with other intermediaries
An IMF doesn’t render the insurance services on its own. Instead, it established strategic partnerships with other insurance intermediaries such as:
- Surveyor and Loss Assessor,
- Insurance Brokers,
- Insurance repositories and corporate agencies
Due to those alliances, a marketing firm has a large pool of expertise. It can tap into it to render varying kinds of services. Read Other Useful Content: Nidhi Company Registration
As a result, it further enhances the stature of a firm that can market other insurance intermediaries.
Providing services beyond its domain
One can say that most of the services that an IMF provides don’t belong to its domain. After realizing that only providing indemnity-related facilities can be restrictive for the modern entrepreneur, the government of India formulated special regulations for an IMF. Doing so allowed it to provide marketing services for the following products:
- Pension Products
- Mutual Funds
- Sebi-licensed financial products
- Products related to banking and financial domain, and
- Other articles that the IRDA might introduce from time to time.
Establishing an IMF is a hassle-free procedure.
Ease of incorporation is one benefit that an Insurance Marketing Firm has that separates it from the rest. The IRDA regulations for an IMF are still new. Read More: Telecom Consulting Services
Thus, a lot of flexibility is allowed when an entrepreneur procures the COR of an Insurance Marketing Firm. While it doesn’t suit every budding start-up, an insurance marketing firm is the most ubiquitous insurance entity. And, it’s all due to the hassle-free nature of its incorporation.
Conclusion
The benefits of starting an Insurance Marketing Firm are many; they range from the various services it allows one to provide to the ease with which one can incorporate it. However, one should not forget that adhering to the IMF terms and conditions is necessary to enjoy those benefits.
What are the different benefits of starting an Insurance Marketing Firm? Read this blog to learn about the many benefits of this multi-faceted insurance entity in India.
