IMF Full Form in Insurance

What is the Full Form of IMF in Insurance?

The IMF Full Form in Insurance is Insurance Marketing Firm. According to the recommendations of the Govardhan Committee by the Insurance Regulatory and Development Authority of India (IRDAI) in the year 2007, IMF has become an important distribution channel in the insurance industry.

IMF Summary:

Insurance Marketing Firms (IMFs) work as the intermediaries between the insurers and consumers. They work like ‘Distribution Companies’, covering customers holistically with the involvement of many insurers.

Distribution Channel Evolution:

This, the Govardhan Committee report, thus recommended IMFs and emphasized the need to increase the outreach of the insurance market for agencies. It is a wide, huge organization that sells all kinds of financial products to consumers for their mutual funds, pension plans, stocks, or insurance policies.

Regulatory Framework:

In January 2015, IRDAI issued regulations for the registration and operations of Insurance Marketing Firms where entities permitted to operate as IMF were companies, LLPs, cooperative societies, or any other entity as specified in the regulations.

Key Activities of IMFs:

The approach of IMFs in soliciting insurance products from several insurers is made in the most transparent and clean manner in dealing with their clients. They market the insurance products, services, and ensure back-office operations, among others, within the regulations provided by IRDAI.

Diversification into Financial Services:

Apart from insurance products, IMFs are allowed to market a wide array of financial products like mutual funds, pension products, banking products, and non-insurance products. This has enabled them to diversify and to provide holistic financial solutions to its customers.