The Role of Insurance Web Aggregators in Simplifying Policy Comparisons and Purchases

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The Role of Insurance Web Aggregators in Simplifying Policy Comparisons and Purchases

As per the IRDAI, the Insurance Web Aggregator is an insurance intermediary that maintains a website to provide an interface to the insurance prospects for price comparison and information on products of different insurers and other related matters.

The minimum paid-up capital for Insurance Web Aggregator is Rupees Twenty-Five Lakh. The net worth of an Insurance Web Aggregator should at no time during the period of certificate fall below 100% of the minimum capital requirements. An Insurance Web Aggregator cannot do any other business than insurance. The objective of the Insurance Web Aggregator’s MOA should be the insurance web aggregators and they are not permitted to do any other activity other than insurance.

Duties and Functions of Insurance Web Aggregator 

As per the IRDA, the roles and responsibilities of an insurance web aggregator are as follows:

• Carry out the activities for lead generation for the insurers.
• Check that information systems, both hardware and software including the aggregation website/portals, Lead Management System and the Data Centers are complying with the generally accepted information security standards. 
• Leads and other data are transmitted to the insurers and others using secured layer data encryption technologies like 128-bit encryption.
• Use RBI-licensed payment gateways for the collection and transfer of premiums to insurers.

How Do They Simplify the Policy Comparisons?

• The web aggregators must display the comparison on their website’s home page
  
  • The prospect’s or visitor’s particulars will be shared with the insurers.
  • Insurance is the subject matter of solicitation.
  • The information displayed on this website is of the insurers with whom our company has an agreement.
• Product information displayed by insurance web aggregators must be authentic and based solely on information received from insurers.
• Not display ratings, rankings, endorsements or bestsellers of insurance products on their website. The content must be unbiased and factual.
• Products will be categorised as:
  • Life
  • Whole Life Policies
  • Term Insurance Products
  • Endowment Products
  • Health Insurance products
  • Retirement – Immediate annuities
  • Retirement – Deferred annuities
  • Children’s products
    
• Non Life
  • Home Insurance
  • Motor Insurance
  • Health Insurance
  • Travel Insurance
  • Personal Accident Insurance
  • Rural Insurance
• Basic features of the products must be compared such as eligibility criteria, plan, policy term, premium for different age groups, minimum and maximum maturity, surrender benefits, loans, etc.
• Information on the products on the website must update from time to time that reflect a correct picture of the product.
• Web Aggregators can integrate their websites with the insurer's website for:
  • Online sale
  • Registration of customer data or proposal form.
• Display product information purely on the basis of the information shared with them by insurers.
• Web Aggregators can use published data for “Additional Information to Customers” based on IRDA Data.

Obligations of Web Aggregators

The following are the obligations of web aggregators and these are as follows:

• The web aggregators must display their license on the website with the details of the validity.
• On the Home page of the website, the insurer must display the names of the insurers with whom it has an agreement to refer the leads.
• The web aggregator who wants to carry the telemarketing or distance marketing activities must register as a telemarketer.
• An effective lead management system must be maintained and the leads must be recorded and monitored through the LMS system.
• Web aggregators must maintain the reports of their activities under the agreement with the Insurer.
• Web aggregators along with their employees comply with all the provisions of the Act, the IRDA Act, 1999. 
• Web aggregator, its employees or promoters can not accept any payment from the Insurer other than the remuneration specified in Regulation 15.

How to Register as a Web Aggregator?

An applicant who wants to become an Insurance Web Aggregator must follow a procedure to get a Certificate of Registration. The procedure is as follows: 

• Applicant must follow the IRDAI (Insurance Web Aggregators) Regulations, 2017.
• Apply to the Authority in Form A.
• Pay the non-refundable fees of Rs. 10 thousand through Demand Draft to the ‘Insurance Regulatory and Development Authority of India’ payable at Hyderabad or by recognised fund transfer to IRDAI.
• Submit all necessary documents/declarations mentioned in Form B and regulations.

Actions Against the Web Aggregator

• In case the web aggregator fails to comply with any obligation under these regulations or acts contrary to the provision of the act, Insurance Regulatory and Development Authority Act, 1999. The Authority will cancel the insurance web aggregator license or take any other action as deemed appropriate under the Act.
• No action will be initiated by the authority and the order passed without giving an opportunity of hearing to the web aggregator.

Action Against a Person Acting as a Web Aggregator Without a Valid License

• A person cannot act as a web aggregator unless an insurance web aggregator license is granted to him by the authority.
• The authority can invoke against such as person penal action under the Act, who is acting as a Web Aggregatos without holding a valid license.

Conclusion

To conclude, the web aggregator must maintain the insurer-wise record of products that are displayed on the website for comparison. The price comparison charts of insurance products must be up-to-date so that customers will get updated information and they make the right decision. However, a flat fee of not exceeding fifty thousand per year towards each product displayed by the web aggregator in the comparison charts of its website. 

If you want to become an insurance web aggregator, then reach out to Registrationwala. We assist you in every step of the process from application, and documentation to finally obtaining an insurance web aggregator license.

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