What is an Insurance Web Aggregator?

An Insurance Web Aggregator is an intermediary that maintains a website to provide an interface for customers to compare and evaluate insurance products from various companies. They help consumers make informed decisions by providing information on premiums, coverage, and policy features.

Who regulates Insurance Web Aggregators in India?

The Insurance Regulatory and Development Authority of India (IRDAI) is the sole regulatory body for Insurance Web Aggregators in India. All entities must be licensed and comply with IRDAI regulations.

What is the minimum net worth required to become a Web Aggregator?

An applicant for a Web Aggregator license must have a minimum paid-up capital of ₹25 lakhs. The net worth must not fall below this amount at any time during the license period.

What is the IRDAI Web Aggregator exam?

The IRDAI Web Aggregator exam is a mandatory examination that the Principal Officer and other key personnel must pass to obtain the license. It tests their knowledge of insurance principles, regulations, and the business of web aggregation.

Is there any mandatory training required before the IRDAI Web Aggregator exam?

Yes, the Principal Officer of the applicant company must undergo training and qualify for the prescribed online test as per IRDAI guidelines.

What is the application fee for a new Web Aggregator license?

The non-refundable application fee for a new Web Aggregator license is ₹10,000 plus applicable taxes, payable to the IRDAI via a Demand Draft or electronic fund transfer.

What is the validity period of an Insurance Web Aggregator license?

An Insurance Web Aggregator license is valid for a period of three years from the date of issue. It must be renewed before its expiry.

How can a Web Aggregator license be renewed?

The application for renewal must be submitted in Form F at least 30 days before the license expires. It must be accompanied by a renewal fee of ₹25,000 plus taxes.

What is the legal entity required to become a Web Aggregator?

An applicant must be a company registered under the Companies Act, 2013, or a Limited Liability Partnership (LLP) registered under the LLP Act, 2008. The main objective of the entity must be specified as 'Web Aggregation'.

What documents are required to apply for a Web Aggregator license?

Key documents include the Certificate of Incorporation, Memorandum of Association (MoA) and Articles of Association (AoA), net worth certificate from a CA, a three-year business plan, details of IT infrastructure, and a list of key personnel.

Can a licensed Insurance Web Aggregator also be an Insurance Agent?

No, an individual or entity applying for a Web Aggregator license cannot be registered as an insurance agent, corporate agent, or any other insurance intermediary at the same time.

What is the role of a Principal Officer in a Web Aggregator firm?

The Principal Officer is the key person responsible for the day-to-day operations and compliance of the Web Aggregator firm. They must meet specific qualification criteria, undergo training, and pass the IRDAI exam.

How does a Web Aggregator earn revenue?

A Web Aggregator earns revenue through commissions from insurers for successful policy sales and a flat fee (not exceeding ₹50,000 per year) for displaying products on their comparison charts.

Can a Web Aggregator offer products from all insurance companies?

A Web Aggregator can only display and offer products from the insurers with whom they have a valid referral agreement or tie-up, as approved by the IRDAI.

Can a Web Aggregator use telemarketing to sell policies?

Yes, a Web Aggregator can use telemarketing and other digital marketing modes, but they must first seek and receive explicit permission from the IRDAI for these activities.

What is the difference between a Web Aggregator and an Insurance Broker?

An Insurance Web Aggregator primarily offers a platform for comparing policies, while an Insurance Broker acts on behalf of the client to provide advice and arrange insurance coverage from different insurers. Their licensing and scope of activities differ significantly.

Can a Web Aggregator employ Point of Sale Persons (POSP)?

Yes, a licensed Web Aggregator can engage and appoint Point of Sale Persons (POSP) to sell simple, pre-underwritten insurance products. These POSPs must also be IRDAI-certified.

What is the process for submitting a Web Aggregator license application?

The applicant must submit the application in Form A of the IRDAI regulations, along with all the required documents and the non-refundable application fee, to the IRDAI in Hyderabad.

Are there mock tests available for the IRDAI Web Aggregator exam?

Yes, there are various educational platforms that offer mock tests and study materials specifically designed to help prepare for and pass the IRDAI Web Aggregator exam.

What happens if a license application is rejected by the IRDAI?

If an application is rejected, the IRDAI will communicate the reasons to the applicant. The applicant can re-apply, but typically only after a one-year waiting period from the date of rejection.

How to pursue a career as an Insurance Web Aggregator

What is Web Aggregator?

Web aggregator maintains or own an online platform used for online enquiry/shopping, where visitors get a collection of information about one or more products and a collection of quotes from various supplier or service providers at one point. Web aggregators are essentially an online portal that help consumer to compare products, make a choice and help him in placing the order with the original supplier/service provider.

In case of Insurance Web Aggregator, they products online access to various insurance products, provides insurance services, product information, and comparison so as to help the consumer to make a purchase.

Insurance Web Aggregator in India should be a company registered under the Companies Act and approved by IRDAI and shall maintains a website and provides information on insurance products of different insurers on strict compliances of the IRDA regulation. Aggregators have proven to be an alternative distribution channel for insurance policies and acts as one-point customer representative for all their queries ranging from policy guidance to assisting in claim settlement.

At present, there are 23 such aggregators in India. The first one in India is PolicyBazzar.com.

Registration

IRDAI (Insurance Web Aggregators) Regulations, 2017 notified by the Authority with effect from 13th April 2017 is the regulations to supervise and monitor Web Aggregators in India. Only a company or a Limited Liability Partnership Firm registered under the Companies Act are eligible to operated as Insurance Web Aggregator in India.

A company who is interested to become a Web aggregator, shall register itself with IRDA. As a process of registration, they shall first obtain a No objection certificate which can be used by the proposed Insurance Web Aggregator to register the proposed Web Aggregator firm name with Registrar of Companies (RoC).

An applicant desiring to get Certificate of Registration to act as an Insurance Web Aggregator shall submit the application to the Authority in Form A alongwith remit a non-refundable application fee of Rs. Ten Thousand and submit all the necessary documents/declarations as mentioned in form B and regulations.

An application, submitted by the Applicant that is not complete in all respects and/or not conforming to the instructions specified in application form and/or not complying with the requirements and/or directions of the Authority, may be rejected. However, before rejecting any such application, the Applicant shall be given a reasonable opportunity to complete the application in all respects and rectify the errors, if any.

Other requirements:

Minimum Capital: The minimum paid up capital for Insurance Web Aggregator is Rupees Twenty-Five Lakh.
Minimum Net-worth: The net-worth of an Insurance Web Aggregator shall at no time during the period of certificate fall below 100% of the minimum capital requirements.

Knowledge & Skill

Training: The principal officer should have completed the specified training on insurance from an institution recognized by the Authority from time to time.
Examination: Apart from the training, the Principal Officer should pass an examination, at the end of the period of training mentioned above, conducted by an examining body recognized by the Authority.

Qualification

The Principal Officer should possess the qualification as specified in Form C (Eligible educational qualifications for Principal Officer) of Schedule I. Principal Officer means a director/partner, who is exclusively responsible for the activities of the Insurance Web Aggregator. The Eligible Educational Qualifications for Principal Officer are as listed below:

a. Bachelors/Masters degree in Arts, Science, or Social Sciences or Commerce or Engineering or Law or Management or its equivalent from any institution / university recognized by any State Government or the Central Government; or
b. Associate/ Fellow of the Insurance Institute of India, Mumbai; or
c. Any post graduate qualification of the Institute of Insurance and Risk Management, Hyderabad; or
d. Associate/ Fellow of the Institute of Chartered Accountants of India, New Delhi; or Institute of Cost and Works Accountants of India, Kolkata; or Institute of Company Secretaries of India, New Delhi; or
e. Associate/ Fellow of the Institute of Actuaries of India; or
f. Certified Associateship of the Indian Institute of Bankers, Mumbai; or
g. Any other qualification specified from time to time by the Authority under these Regulations.

Expected Employer:

There is no restriction on for how many insurance companies or insurance products, a web aggregator can act. However, web aggregator shall enter into an agreement with all the insurer for which they would be acting as web aggregator.

Scope

Micro finance currently considered as an obligation and not an opportunity. Under the provisions of regulations, all micro insurance policies fulfills the social obligations requirements of the Insurer.

The micro insurance industry is faring very well for the past few years in India and further growth in value and volume. With an Insurable population of above 625 million life in India, Micro insurance business holds a lot of potentials to expand and develop in India. Despite all challenges, micro insurance industry offers a great scope for development in our country and that is the reason for big insurance players entering Micro Insurance Sector. India is a predominantly rural country and will continue to be so in the near future.

An Insurance Web Aggregator cannot engaged in any other business other than the Web Aggregation of Insurance Products, however they can act as tele-marketer/distance marketing. They can also provide “insurance services” for the insurance products of the insurer.

Typical Activities and Function of Web Aggregators

Activities undertaken and functions performed by Insurance Web Aggregators allowed by regulation includes:

Display of product comparisons on Insurance Web Aggregator web-site
Transmission or sharing of leads by Insurance Web Aggregator to the Insurers
Process and Sale of Insurance Online
Sale of Insurance by tele-marketing/Distance marketing modes and other distance marketing activities for solicitation of Insurance based on the leads generated from its designated website.

Roles and responsibilities of Authorised Verifier

i) solicit insurance business only through tele-marketing mode.
ii) receive inbound telephone calls from prospects/ policyholders seeking assistance or clarifications on the insurance products they want to buy.
iii) sell an insurance product based on the need analysis of the prospect.
iv) explain the main features of the similar insurance product of other companies to help customer make a choice.
v) not make any unsolicited outbound telephone calls for solicitation of insurance products
vi) not make false promise or lure the prospects by exaggerating the benefits under the insurance product

Expected Salary/Income/Commission:

The remuneration payable to insurance Web Aggregator is as per IRDAI (Payment of Commission or Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Regulations, 2016. Typically, they earn 8–15% commission on the sale of different policies, which is the major revenue stream for an Insurance Web Aggregator.

Leads which are converted into the sale of insurance policies will entitle the Insurance Web Aggregator to earn remuneration.

A flat fee of not exceeding Fifty thousand rupees per year towards each product displayed by the Insurance Web Aggregator is also allowed.

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