Updated on October 4, 2023
In the insurance industry, “solicitation” refers to the act of marketing, promoting, or actively seeking to sell insurance policies to potential customers. It involves various activities undertaken by insurance agents, brokers, or representatives to encourage individuals or businesses to purchase insurance coverage. Solicitation plays a pivotal role in the distribution and sale of insurance products, as it facilitates the connection between insurers and policyholders.
Key Aspects of Solicitation in Insurance
Licensed insurance agents and brokers in India are authorized by regulatory authorities like the IRDAI to conduct insurance solicitation through various communication channels, such as in-person meetings, phone calls, emails, and digital marketing. They must provide accurate information about insurance products, perform needs assessments, and disclose essential details about insurers, policies, premiums, and commissions. Compliance with insurance laws and ethical standards is crucial, and customer consent is required before policy purchase. Additionally, thorough record-keeping of solicitation activities is mandatory.
Importance of Solicitation in Insurance
Solicitation by licensed insurance agents and brokers serves several important purposes. It educates potential policyholders about insurance, provides customized solutions to address their needs, widens access to insurance options, ensures regulatory compliance and ethical sales practices, and empowers individuals and businesses to make informed decisions for enhanced financial security and risk management.