Insurance brokers may be allowed to expand into smaller towns and cities through the sub-broking channel so that the non-life insurance needs of retail customers can be better served. Currently, there are around 300 active brokers, mostly in urban centres.Retail distribution of insurance takes place mainly through agents who are representatives of a particular insurance company and sell policies of only that company. Brokers, on the other hand, are independent intermediaries, selling products of multiple insurers.

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