Benefits and Role of Insurance Web Aggregator in India

January 31, 2024

Registrationwala

The insurance web aggregators are the intermediaries between the customers and insurance companies. They are an important part of the insurance sector in India. These aggregators, simplify the process of purchasing an insurance policy as they offer a wide range of options to the customers.

So, the responsibilities of web aggregators have to comply with the wide range of obligations that must be fulfilled. Along with the legal compliances, they have to follow fair practices, protect data privacy and maintain transparency in their operations. By complying with the legal guidelines, they offer multiple benefits. Check the benefits or role of the insurance web aggregator in the article.

What is Insurance Web Aggregator?

An Insurance Web Aggregator is an online platform to compare insurance products through a website or a mobile application. The policy buyer can access information on various insurance policies, offered by different insurers.

The aggregator does not directly sell insurance policies, instead, it functions as an intermediary. However, the Insurance Web Aggregator falls under the Insurance Regulatory and Development Authority Act, of 1999. These regulations make regulations for web aggregators related to registration, data security, information display, and fair practices. This is made for the protection of consumers in the online market.

Let’s understand this with an example: Mr. ABC wants to purchase a life insurance policy and for that, he visits the Policybazaar website (an online insurance web aggregator). Check the list of other Insurance Web Aggregators. Here he found the list of policies from different insurers with details such as premium price, claim settlement ratio, waiver, and additional benefits.

Benefits of Insurance Web Aggregator

The role of web aggregators is crucial in the process of buying an insurance policy. However, the customers have multiple advantages and these are as follows:

Quick Comparison Between Insurance Policies

The insurance web aggregator collects data on various insurance policies from service providers and shares them on their platform. This includes the details such as coverage types, premium of the policy, exclusion and policy wordings.

The aggregators design their websites in a way that makes it quick for individuals to navigate the website with different layouts and terminologies. Also, you can sort the options based on specific criteria such as your budget, coverage requirements, age, health conditions, etc. This will help you compare multiple policies without visiting the portals of all these insurers, one by one. However, it is a time-consuming process, so the aggregators save time as well.

Example: Ms Priya wants to buy a health insurance policy for her family and for that she visits the website of an IRDAI insurance web aggregator. She sets her search criteria as family coverage, budget of 10 thousand, and other hospitalisation benefits. The platform instantly showed the list of policies that match your details. From the provided policies, choose the one that best suits the needs of your family and budget.

Saves Time and Cost

As mentioned above, the aggregators eliminate the need to visit multiple insurance company websites. Also, you don’t have to contact various agents individually. By putting some information, you can get a lot of data of information about the different policies. It enables them to compare the offerings of insurance companies and choose the best option that suits their needs the best.

Similarly, web aggregators have access to exclusive deals, discounts, and promotional offers. These deals, you will not find while purchasing the insurance directly from the insurance provider. As they connect with insurance companies, they can negotiate the best deal on behalf of their users. This means you can get access to better coverage at affordable prices that will lead to significant cost savings.

Transparent and Fair Policies

Protect the customer data through strong encryption during transmission and storage of their data. The insurance web aggregators must obtain informed and revocable consent from customers to collect their data and use it.

They must use the data only for the intended purpose and that is also after obtaining consent from the customer. Similarly, they should implement clear data retention policies to dispose of the data securely after it is no longer needed. The web aggregator must give notice to the authorities and individuals in case of a data breach.

Make an Informed Decision

The web aggregator mentions the source of their revenue, shares transparent details about the product, clearly mentions the terms & conditions, and explains the data collection, and its use. Also, they have to report the adherence to fair practices and transparency to regulatory authorities. So, after taking care of all the government regulations, you can make an informed decision before purchasing a policy.

Unbiased Information

The insurance web aggregators in India, have to adhere to fair business practices and transparency in all their operations. However, they provide impartial advice to customers without favouring any insurance company.

They clearly mention the earnings from insurance companies to avoid any conflicts of interest. This is done by following the compliances of the insurance web aggregator. You will find up-to-date and accurate information about all the insurance products. In case, any customer reaches out to the company, they resolve the complaints effectively.

Conclusion

The customers show trust in insurance web aggregators if they work as per government regulations. And, contribute to the aggregator’s long-term success in the insurance industry. So, if you are looking to obtain an Insurance Web Aggregator License, then reach out to Registrationwala. Get the license and contribute to the growth and integrity of the insurance industry.