The Ultimate Guide to an Agent of Record

mins read
First Employee Onboarded
FREE for 3 Months!
Let us lighten your administrative load so you can focus on innovation and growth.
Claim Now
Employment and HR compliance in India made easy
Try Rapid

Benefits are a key factor in hiring talent. Yet, there is a considerable mismatch between what employees expect and what employers plan. Employers already find it difficult to design benefits packages. In addition, designing these packages in a new region where you are not familiar with the local laws can be even trickier, especially where health insurance is concerned. You have to understand:

  • Health insurance regulations
  • Legal requirements
  • Employee expectations
  • Credibility of providers
  • Process to deal with providers
  • and more.

An agent of record can simplify this process for you. 

What is an Agent of Record?

An agent of record (AOR) is an individual or a company that can manage insurance policies on your behalf. You can hire an AOR if you don't want to get into the logistics of insurance and focus on more strategic tasks that build a business. You have to sign an agent of record letter to legally authorise the AOR to represent your business to insurance companies. 

How Does the Agent of Record Process Work?

You can follow the below steps to start working with an AOR.

1. Determine your insurance needs

Firstly, clarify what type of insurance you need and your budget. It will help you better lead the conversation with AOR.

2. Find an Agent of Record 

You can create a list of AORs to contact by searching online. Referrals are a great way to get a credible list. Contact these AORs and get their proposals. 

3. Evaluate the Agent of Record  

Find which AOR best suits your needs based on the following:

  • Knowledge of the region/market
  • Experience in handling similar types of insurance
  • Processes to handle claims or any communication 
  • Cost of services

Working with an AOR is a long-term decision, so compatibility matters. Finalise the one which can easily fit into your process and budget. 

4. Authorise the Agent of Record

Once you have finalised AOR, they will help you decide on the insurance policies if you haven't purchased already. An important step is to authorise AOR to deal with the insurance company on your behalf. You can sign an AOR letter that makes the AOR your legal representative. Suppose you decide to change AOR. Then, you have to sign an AOR letter again that names the new AOR as your representative. 

Pros and Cons of Working With an Agent of Record


  • Saves time

AORs guide you in choosing the insurance policies as they are familiar with regions and markets. They also understand local laws and regulations and help companies stay compliant. By getting this assistance, you can save time while hiring in the new region. You don't have to spend hours understanding the rules and researching local insurance companies. 

  • Reduces administrative burden

AORs assist in initial insurance documentation and also manage claims later. Thus, your administrative burden is reduced.


  • Experience varies based on region/market

An AOR may be more experienced in one region and less in another. So, your experience can vary from country to country or state to state based on how much local expertise the AOR has. 

  • Reduces administrative burden only to an extent

An AOR does reduce your administrative work of managing insurance. But insurance is only a part of benefits schemes. There are further benefits that need assistance in planning and managing. There are other components to talent management, like payroll, taxation, etc. So, AOR does reduce administrative burden but only to an extent. 


An employer of record (EOR) helps you employ individuals in foreign countries where you don't have a legal entity. While AOR mainly assists with insurance, EORs becomes an official employer on paper and handles payroll, employee benefits, taxes, compliances, contracts and human resource administration.

Choosing EOR over AOR helps you with:

  • Faster hiring: EOR takes care of initial hurdles related to benefits and local regulations in any new market, helping you to hire quickly. With EORs, you can onboard employees in less than a day.
  • More compliance assurance: While AORs help only with insurance, EORs become legal employers and assist with contracts, benefits, taxes, payroll and more. Overall, it reduces the legal complexity of hiring in a new region and gets you more compliance assistance. 

How Rapid Can Simplify Benefits for Your Indian Team

Rapid EOR can speed up the process if you plan to expand in India. We not only assist with insurance but also handle end-to-end talent management.

We help you with:

  • Hiring: You can contact recruiters via our integrated service marketplace to find the best talent in India. 
  • Customised contracts: Our platform helps you create customised contracts compliant with local laws by simply filling in a few employee details.
  • Background verification: You can get background verification done of new hires via our trusted vendors. 
  • Onboarding: You can onboard employees in as little as 5 minutes by simply uploading documents to the self-serve platform. 
  • IT equipment provisioning: You can easily send laptops and other IT equipment to new hires through a safe ordering process.
  • Localised benefits: You can offer comprehensive benefits packages to employees as per the local laws and market norms.
  • Payroll processing: You can easily set up payroll and also get tax support.
  • Flexible workspace solutions: You can also request office spaces in the location of your choice directly through the platform.
  • End-to-end talent management: You can the entire employee lifecycle :
  • Tracking leaves and timesheets
  • Giving rewards, incentives and stock options
  • Managing expenses and reimbursements
  • Handling employee support queries
  • Completing exit formalities.

Book a demo now and start expanding in India rapidly. 

Frequently Asked Question (FAQs)

1. What is an agent of record letter?

An agent of record letter is a formal document that authorises an AOR to represent your business to insurance companies legally. You can have to sign an agent of record letter whenever you sign a new AOR or change an existing AOR. 

2. What is an agent of record change?

An agent of record letter change happens when you replace your existing AOR with a new AOR. For this process, you must sign an agent of record letter allowing the new AOR to represent your business legally.

3. What should you know before signing an AOR letter?

Working with an AOR needs great coordination and compatibility as they manage your claims. Always check their process in advance and whether their way of working can be integrated into your existing system. Also, be clear on the AOR servicing fees. You can get all these details in the initial proposal you get from the AOR. 

4. What is the difference between AOR and BOR?

An agent of record (AOR) and a broker of record (BOR) are generally the same. They handle insurance policies on behalf of businesses.

5. What should you do if you signed a bad AOR?

You can find a new AOR and sign an agent of record letter to replace the existing AOR with a new AOR. After the agent of record change, the new AOR will manage all your insurance policies. 

Connect with Us