Regulation 4 lists down the functions of a Reinsurance Broker:

(a) Familiarising himself about the client’s business and risk retention philosophy

(b) Maintaining clear records of insurer to assist reinsurers

(c) Rendering advice based on technical data on the reinsurance covers available in the international insurance and the reinsurance markets

(d) Maintaining a database of available reinsurance markets including solvency ratings of individual reinsurers

(e) Rendering consultancy and risk management services for reinsurance

(f) Selecting and recommending a reinsurer or a group of reinsurers

(g) Negotiating with a reinsurer on client’s behalf

(h) Assisting in the case of commutation of reinsurance contracts placed with them

(i) Acting promptly on instructions from a client and providing it written acknowledgement and progress reports

(j) Collecting and remitting premiums and claims within such time as agreed upon

(k) Assisting in the negotiation and settlement of claims

(l) Maintaining proper records of claims

(m) Exercising due care and diligence at the time of selection of reinsurers and international reinsurance brokers having regard to their respective security rating and establishing respective responsibilities at the time of engaging their services

The person entitled to become an Insurance Broker can be an individual, firm, a Company under the Companies Act, 1956; a Co operative Society registered under the Co-operative Societies Act, 1912 or under any other law for the registration of Co-operative Societies or such other persons as IRDA recognises to act as an insurance broker. Normally, IRDA encourages only Companies to take up Insurance Broking.