Insurance brokers seek level playing field

The Insurance Brokers Association of India (IBAI), the only trade body of licensed insurance brokers, has appealed to the Insurance Regulatory and Development Authority (Irda) to create a level playing field for brokers similar to that of insurance agents.

Addressing a press conference, Bharat J Boda, president of Insurance Brokers Association of India, said: "Most of the corporate clients who have a paid-up capital of more than Rs 3 crore shy away from availing the services of brokers in respect of tariff business as they would be deprived of the five per cent special discount. This has hampered the growth of brokers."

"We do not mind the special discount being there but then proper compensation has to be paid to the brokers," he added.

Apart from this, IBAI also wants issues like sub-broking and anomalies in remuneration to be sorted out. IBAI has convened a conference of insurance brokers on July 31 in the city to address these problems. About 150 delegates from across the country would be attending the conference.

Boda said that insurance brokers who have invested huge capital are a disillusioned lot as the market which they are supposed to service is closed for them.

"The disillusionment is because 80 per cent of the insurance business still falls under tariff regime where the remuneration prescribed is disproportionately low," Boda said.

It is estimated that the insurance premium sector in the country is worth Rs 15,000 crore and brokers control around Rs 700 crore in the premium insurance segment.