Types of Licenses Issued by IRDAI: Complete Guide for Insurance Businesses

Starting or scaling an insurance business in India isn’t just about products and sales—it begins with the right license. Whether you’re an entrepreneur entering the insurance space or an established firm planning to expand, understanding the different licenses issued by Insurance Regulatory and Development Authority of India (IRDAI) is critical.

Each license serves a distinct business model, comes with its own compliance framework, and determines what activities you’re legally allowed to perform. In this guide, we break down all major IRDAI licenses, explain who they’re meant for, and help you identify which one fits your business goals.

Why IRDAI Licensing Matters

IRDAI is the apex body that regulates and promotes the insurance and reinsurance industry in India. Any entity involved in insurance distribution, advisory, or risk underwriting must be licensed by IRDAI.

Holding the correct license ensures:

• Legal compliance and credibility
• Trust with insurers and customers
• Smooth onboarding with insurance partners
• Protection from regulatory penalties

At Helios Global, we often see businesses delay growth simply because they chose the wrong license—or didn’t fully understand the compliance obligations that came with it.

1. Insurance Broker License

An Insurance Broker acts as an independent intermediary between insurers and customers, offering advisory services and policy placement.

Types of Insurance Brokers:

• Direct Broker – Deals directly with clients for life, general, or health insurance
• Reinsurance Broker – Works between insurers and reinsurers
• Composite Broker – Combines both direct and reinsurance activities

Key highlights:

• Higher net worth requirement
• Strong compliance and reporting obligations
• Suitable for scalable, advisory-led insurance businesses

👉 Learn more about broker licensing support on our Insurance Broker License Consulting Services

2. Corporate Agent License

A Corporate Agent represents one or more insurers and distributes their insurance products to customers.

Key highlights:

• Can represent limited insurers (as per IRDAI norms)
• Lower capital requirement compared to brokers
• Faster onboarding with insurers

This license works well for businesses that prefer distribution over advisory.

3. Individual Agent License

An Individual Insurance Agent is authorized to sell insurance policies on behalf of an insurer.

Key highlights:

• Mandatory training and certification
• Can work with limited insurers
• Ideal for solo professionals

While simple to obtain, this license is not suitable for scaling a business entity.

4. Web Aggregator License

A Web Aggregator operates an online platform that allows customers to compare insurance products across insurers.

Key highlights:

• Strong IT, cybersecurity, and compliance requirements
• Strict content and comparison guidelines
• High regulatory oversight

If you’re planning a tech-driven insurance model, this license is powerful—but demanding.

5. Insurance Marketing Firm (IMF) License

An Insurance Marketing Firm (IMF) can distribute insurance products, mutual funds, and other financial products under one structure.

Key highlights:

• Can appoint Insurance Sales Persons (ISPs)
• Lower net worth than brokers
• Good balance between flexibility and regulation

IMFs are increasingly popular among new-age insurance entrepreneurs.

6. Point of Sales Person PoSP License

A PoSP is authorized to sell simple, predefined insurance products.

Key highlights:

• Minimal training and quick certification
• Limited product scope
• Ideal for high-volume, low-complexity sales

Choosing the Right IRDAI License

The “best” license depends on:

• Your business structure (individual vs company)
• Your revenue model (advisory vs distribution)
• Your growth plans (local vs national scale)
• Your compliance readiness

This is where most businesses need expert guidance—not just to apply, but to plan long-term compliance and scalability.

How Helios Global Helps

At Helios Global, we don’t just help you apply for an IRDAI license—we help you build a compliant, future-ready insurance business.

Our services include:

• License selection advisory
• End-to-end IRDAI application support
• Documentation, net worth structuring & compliance setup
• Post-license operational and regulatory support

👉 Explore our full range of services here: IRDAI License & Insurance Compliance Services

If you’re unsure which license suits your business, speak to our experts for clarity before you commit.

📞 Contact Helios Global for a consultation.

Final Thought

Insurance licensing isn’t just a regulatory step—it’s the foundation of your business model. Choosing wisely today can save years of restructuring tomorrow.

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