Connect with us and create your own success story!

Connect with us and create your own success story!

Write to us at imf@maxlifeinsurance.com or give us a call at 01244121500; Extn- 1276

Insurance Marketing Firm (IMF)

Insurance Marketing Firm (IMF) is a new distribution channel approved by IRDAI as per the Govardhan Committee’s report submitted in 2007. It was suggested that a group of agencies be setup to improve the market penetration of the insurance business to enable selling of mutual funds, pension plans, stocks, and other fiscal services by merchandisers under one umbrella. Insurance Marketing Firms (IMFs) are similar to “Distribution Companies” having multiple tie-ups with insurers, a model akin to Independent Financial Advisors (IFA). In continuation to this recommendation, the Insurance Regulatory Development Authority of India (IRDAI) regulations pertaining to the registration of Insurance Marketing Firms were released by IRDAI on 21st January, 2015.

Why IMF's prefer Max Life?

  • Market leader in the IMF distribution space (Src: IRDAI IMF Report, Aug 2017)
  • High clarity on the regulations and the registration process
  • Dedicated channel support before & after the incubation process

More About IMFs

Insurance Marketing Firms (“IMF”) can be a Company or LLP or Cooperative Society; or any other entity as may be specified in the regulations. IMFs are free to sell insurance products from multiple indemnifiers while retaining an honest and upfront responsibility toward their clients. However, an IMF can conduct unlimited business with a single company. Insurance marketing firms can engage in the following activities.

  • Solicitation of insurance products
    IMFs are required to market products of 2 life, 2 general and 2 health insurance companies. However, with regard to general insurance, IMFs can market only retail (individual) lines of products.

  • Insurance servicing activities
    a) back-office activities as per the IRDAI Guidelines on Outsourcing of activities by Insurance Companies, 2011;
    b) becoming the approved person of insurance repositories;
    c) undertaking survey and loss assessment work by employing licensed surveyors & loss assessors;
    d) any other insurance-related activity permitted by IRDAI from time to time.

  • Marketing of other financial products through FSE
    a) mutual funds (SEBI)
    b) pension products (PFRDA)
    c) other financial products (SEBI)
    d) banking/ financial products (RBI)
    e) non-insurance products (Dept of Posts)
    f) any other product permitted by IRDAI
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Eligibility to become an IMF

Eligibility to become an IMF

You will have to be a private limited company, a limited liability partnership, or be otherwise recognized by the IRDA.

 

Your company’s minimum net worth must stand at a minimum of INR ten lakhs

You must have professional indemnity coverage.

Your Principal Officer needs to meet all IRDAI eligibility criteria, and your staff must all be licensed by an institution designated by IRDAI.

Advantages of becoming an IMF

  • Better Commission and Income
  • Opportunity to become a part of healthy corporate & professional setup
  • Legacy Creation 
  • Enable to offer multiple products
  • Business expansion opportunity through channel sales
  • Unlimited rewards and recognition
  • Offer one customer one adviser Model, it gives an opportunity to enjoy maximum wallet share hence ensure increased income
  • Opportunity to increase customer base by Five folds.
  • Enable to cater investment needs of rural, semi-urban, & urban customers

Why should you partner with Max Life?

Max Life supports the new entrepreneurial initiative of participating in the development of more IMFs across the country. At the end of the 2017 financial year, "fifty of the country’s one hundred and fourteen IMFs were recorded to have formed partnerships with Max Life."

Here are 3 major reasons why companies prefer partnering with Max Life as IMFs:

  • Comprehensive understanding and experience of this initiative
    Operational pliability, a supreme work ethic, and a strong sense of clarity surrounding regulations, compliance procedures, dissemination of product information, and systems knowledge - we have everything that IMFs need for successful business relationships.

  • Opportunity to partner with one of the largest Insurance companies
    At its core, Max Life believes in a customer-centric approach and in making advice-based sales, putting the needs of the customer first, and in developing strong associations with them, so they return with more business repeatedly. As a partner concern, you will reap the benefits of these interconnections and can draw them into your business.

  • Full-fledged support and training for IMFs by Max Life experts
    Max Life trains partner IMFs to make an insurance product sale, keeping each customer’s need in mind, thereby developing credibility, and a collaborative spirit - the very pillars Max Life is founded on.

Frequently Asked Questions

1. What is an Insurance Marketing Firm ?

In a new move to improve the market penetration of the insurance business, the Insurance Regulatory and Development Authority of India (IRDAI) has suggested that a group of agencies be set up where merchandisers can sell mutual funds, pension plans, stocks, and other fiscal services from under one umbrella.

 This cluster of companies, and some of the industry’s upper crust, became known as Insurance Marketing Firms (IMFs).

IMFs meet the needs of a large base of customers and offers better flexibility than their more traditional counterparts in the insurance business. Insurance Marketing Firm clients, whether it is individuals looking to indemnify their possessions or health in cases of accidents or injury, can take their pick from a greater ambit of choices than available with companies of yore. This, essentially, is what will set IMFs apart in the coming years.

2. What are the business opportunities for Insurance Marketing firms?

The expected returns from an insurance policy have changed in recent times. The younger, educated, and better-exposed generation, making substantial investments in insurance today is selecting plans with a notably higher risk factor.

IMFs are coming up with ways and means to boost their business and cement their position for the long-term in the insurance market.

Setting up IMFs was a cogent move to promote the penetration of insurance in the nation. The top 2 potential business opportunities in this still small & new market are:

1)      The IMF channel absorbs finance professionals, insurers, and investors, thereby setting up a healthful agitation in the economy, and continuing to offer employment for decades into the future.

2)      Each IMF, as per IRDAI regulations, can solicit insurance products from a maximum of six insurance companies, two each of life, health, and general. This presents an earning potential from multiple companies at once, basis the best sourced product.

3)      IMFs have approval under IRDAI to cross-sell to their customers. This means that they can distribute a diverse set of products from multiple sources to an existing client.

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