Ever wondered what happens behind the scenes before an insurance advisor or broker sits across from you and helps you buy a policy? There’s a whole regulatory system that governs how and whether they’re allowed to operate.
Till now, every insurance broker, corporate agent, insurance marketing firm, web aggregator, surveyor, third-party administrator, anyone in the insurance distribution business in India, had to renew their licence with IRDAI every three years. They’d file paperwork, pay renewal fees, and essentially prove their right to keep operating. That system is gone now.
IRDAI has formally moved to a perpetual registration model. Once you’re in, you’re in, as long as you stay compliant and pay an annual fee. This is a significant shift in how India’s insurance distribution ecosystem works. And it has real implications for everyone buying insurance.
What Was the Old 3-Year Renewal System for Insurance Intermediaries?
How Certificate of Registration (CoR) Renewal Worked
Here’s what the old world looked like.
An insurance broker, corporate agent, or an insurance marketing firm had to renew their Certificate of Registration every three years. It involved compliance filings, payment of renewal fees, documentation reviews, and sometimes considerable uncertainty, especially for smaller intermediaries.
For large, well-resourced intermediaries, this was manageable yet annoying. It consumed management bandwidth and created compliance costs. It also introduced a kind of existential uncertainty every three years: will the renewal come through in time?
Problems With the Triennial Renewal System
Each renewal cycle meant intermediaries were reluctant to make long-term investments. Why build a sophisticated claims management system, or invest in training advisors, if you don’t know whether you’ll be operating 36 months from now? The three-year cycle, meant as a safeguard, was inadvertently acting as a brake on growth.
India’s insurance penetration currently sits around 3.7%, well below global averages. One of the ways you fix that is by making it easier for distribution to operate and grow.
IRDAI New Circular 2026: What Changed in Insurance Intermediary Registration?
End of the 3-Year Renewal Cycle
On March 16, 2026, IRDAI issued a circular that formalised the end of the triennial renewal system for Certificates of Registration (CoR) issued to insurance intermediaries.
The move is part of a broader push to deepen India’s insurance penetration and make distribution networks more stable and scalable. It is rooted in the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which Parliament passed in December 2025. It came into force on February 5, 2026. This Act brought sweeping amendments to India’s insurance laws, including the Insurance Act, 1938.
Introduction of Perpetual Registration
Section 42D of the Insurance Act now provides that registrations granted to insurance intermediaries remain valid on a continuous basis, until it is either suspended or cancelled by IRDAI.
In simple terms, the three-year clock is gone. There’s no renewal deadline. The licence remains on as long as the intermediary pays their annual fee and behaves responsibly.
How The Perpetual Registration System Works
Once a fresh registration or renewal is granted to an insurance intermediary after February 5, 2026, the Certificate of Registration is valid indefinitely. There is no expiry date tied to a calendar.
However, perpetual does not mean unconditional. Each registered intermediary must pay an annual fee. Failure to pay this fee, or non-compliance with IRDAI’s conduct and reporting requirements, can lead to suspension or outright cancellation of the registration.
IRDAI retains full authority to act against intermediaries. Continuous supervision through compliance filings, fit-and-proper checks, and reporting requirements replaces the old periodic renewal exercise.
Who Does This Apply To?
The new framework covers the full spectrum of insurance intermediaries. This includes:
Insurance brokers (direct, reinsurance, and composite)
Corporate agents
Insurance marketing firms (IMFs)
Web aggregators
Common service centres
Surveyors and loss assessors
Insurance repositories
Third-party administrators (TPAs)
At Algates Insurance, we operate as an IRDAI-certified insurance marketing firm(IMF). Changes to the intermediary registration framework apply directly to entities like us and to the broader network of advisors, brokers, and distribution partners that together form India’s insurance ecosystem.
What This Means For The Insurance Industry
For intermediaries, the shift is practical and meaningful. Without the triennial renewal hanging over their heads, businesses can make longer-term investments.
A broker can commit to building a better digital servicing platform without worrying that the licence might not renew in time to justify the spend. A corporate agent in a Tier 2 city can hire and train advisors with confidence. An insurance marketing firm can plan its growth over five or ten years rather than thinking in three-year blocks.
For newer and smaller players, the effect is even more significant. The renewal cycle was expensive and time consuming. Removing it levels the playing field somewhat, enabling digital-first intermediaries and regional advisors to compete more effectively.
The government’s stated goal is Insurance for All by 2047. Reaching every corner of India, from metro cities to gram panchayats, requires a distribution network that is stable, well-funded, and growing. Perpetual registration nudges the system in that direction.
Challenges With Perpetual Registration System
There is an important counterpoint to acknowledge. Perpetual registration only works well if IRDAI’s ongoing supervision is robust. In the earlier model, the renewal cycle served as a periodic check. It was an opportunity to review whether an intermediary met conduct standards, solvency norms, and fit-and-proper criteria With renewal gone, that accountability now has to come from continuous monitoring.
What Does It Mean For You As A Policyholder?
You might be wondering: why does any of this matter to me? I just want a good health insurance or term insurance plan.
Here’s the honest answer. The connection is indirect but real.
Will Service Quality Improve?
When your advisor, broker, or insurance platform is not under constant pressure from a three-year renewal countdown, they can invest more in the quality of what they do. Better technology for policy issuance and renewals. Better documentation support. Better claims assistance. More informed advisors who have had time to be properly trained rather than pulled into compliance exercises.
The service quality your advisor offers is partly a function of how stable and well-resourced the intermediary ecosystem is. A more stable one tends to produce better servicing.
What Should You Watch Out For?
The flip side is that regulatory discipline must hold. The protection you get as a policyholder, from mis-selling, from inadequate advice, from intermediaries cutting corners; will now depend on ongoing supervision from IRDAI. Whether that proves equally effective will be something to watch.
How Algates Insurance Approaches This
At Algates Insurance, we’ve always believed that great insurance advice doesn’t have a renewal date.
Algates Insurance is an IRDAI‑certified insurance marketing firm (IMF) that provides free, unbiased guidance across health and term insurance needs. Perpetual registration lets us focus on long‑term customer relationships, not on worrying about three‑year renewal deadlines. We can invest in better tools and training, so you get more consistent, transparent advice.
If you want to talk through your health insurance or term insurance needs, book a free call with us. No spam, no sales pressure. Just honest advice.
Disclaimer: This blog is for informational purposes only and does not constitute legal or regulatory advice. All regulatory details are sourced from publicly available IRDAI circulars and government notifications. Algates Insurance is an IRDAI-certified insurance marketing firm with IRDAI IMF Registration Code: IMF187250600920210470.
Frequently Asked Questions
It is a new system under which Certificates of Registration (CoR) issued to insurance intermediaries remain valid indefinitely. There is no three-year renewal deadline. The licence stays active as long as the intermediary pays their annual fee and complies with IRDAI's requirements.
The three-year validity period for CoRs was discontinued from February 5, 2026, following the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. IRDAI issued a formal circular on March 16, 2026, explaining the transitional arrangements.
Not at all. Perpetual registration means the licence doesn't expire on a fixed date. But IRDAI retains full authority to suspend or cancel a registration for non-compliance, non-payment of annual fees, or misconduct. Ongoing supervision replaces the old periodic renewal process.
It is a landmark piece of legislation that amends India's core insurance laws. Key changes include allowing 100% FDI in insurance companies, reducing entry barriers for foreign reinsurers, easing share transfer rules, and introducing perpetual registration for intermediaries. It also significantly strengthens IRDAI's enforcement powers.
Intermediaries receiving fresh registration or renewal between February 5, 2026, and June 30, 2026, must pay an interim annual fee. Any excess renewal fees already collected after February 5, 2026, will be adjusted or refunded. IRDAI will notify a permanent annual fee framework after June 30, 2026.
Not directly. Policyholders don't need to do anything. But indirectly, a more stable and less burdened intermediary ecosystem can lead to better quality of advice, servicing, and claims support over time.
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