Insurance Web Aggregator in India: The world is get increasingly dangerous. You never know when the next tragedy. In face of this uncertainty, more people have started seeing insurance policies in a new light. As the number of such folks is increasing, entrepreneurs have come up with a system that can automate the insurance buying and selling process. It’s called Insurance Web aggregator, and it requires an Insurance web aggregator license.
When you collect and post things on the web, you become a web aggregator, meaning that if you collect and organize information and make it visible to the people, you’re an aggregator on the web. If that information is concerned with insurance policies, and in addition to merely presenting the information to the people, you’re also providing a module by which they can buy insurance policies, you become an Insurance web aggregator.
In order to start such a complex business venture, you need to acquire the proper registration from the IRDA. Insurance Regulatory Development Authority of India. In this blog, we will answer the following questions regarding that license:
- What is IRDA web aggregator license?
- What is the eligibility to become an insurance web aggregator?
- What is the process of acquiring the license?
- What is IRDA web aggregator license fees?
- How to renew the license once the validity is over?
What is IRDA Web Aggregator License?
We now live in the age of digitization where customer’s demands have increased and their forgiveness and patience have decreased. Thus, the IRDA introduced a system that can automate the insurance buying and selling procedure with minimum human element. That system should also:
- Provide customers with the options to peruse different insurance policies.
- Provide customers with a way compare between different policies.
- Provide customers with a way to directly by the policies with minimal human interaction.
To deal with the lack of forgiveness present in today’s people, the human element was removed from this system. And as everything is automated, it made it easier to deal with people’s lack of patience.
However, there was still an issue. In addition to going digital, India is also sprinting towards privatization. With most of the PSUs are being handed over to the private companies, it became necessary that private institutions are given a chance to develop an insurance web aggregator system. Insurance Web aggregator license was the answer IRDA came up with. Through the license, the IRDA permits private enterprises to get a chance to start such a business.
However, not everyone could be just given the license. IRDA had to put a system in place to ensure that people’s interest are protected and the ethics of insurance policies remain untarnished. That’s why, they created a specific eligibility criteria to filter out those that RBI considers are not suited to get the license.
What is The Eligibility Criteria For a Business Web Aggregator For Insurance Policies?
Before you take one step towards filing the application to become a web aggregator, IRDA has set an eligibility criteria that you must fit into first.
- You must have a business organization.
- You must not be, in any shape or form, a current corporate agent, microfinance agent, insurance agent, loss assessor & surveyor.
- You must not have a criminal case file against you at the time of filing the application
- Your principal officer, the one who’ll watch over the process of insurance web aggregation, must have cleared IRDA web aggregator examinations.
How to Acquire The IRDA Web Aggregator License?
The process of obtaining insurance web aggregator license in India involves the following steps:
- Understand the insurance web aggregator business model: Before applying for the license, refresh your knowledge regarding insurance web aggregator license business model. Remember that you’re not a marketer. Ergo, you’re not marketing insurance policies for a particular. Your portal is merely an insurance agent in a technological form. As such you’re providing a way to people to browse and buy insurance policies of their choice.
- Prep your principal officer with IRDA examination: The principal officer of your insurance web aggregator company must have cleared the IRDA examination for insurance web aggregation beforehand. Thus, get him ready as soon as possible.
- File the application for the license: File the application form for the license via the online mode (it’s the only mode available). Upload the required documents as well.
- Let the IRDA process your application.
- Acquire the license if the IRDA doesn’t encounter any issues with either your application or your document.
What is the IRDA Web Aggregator License Fees?
The fee for getting your application processed is decided by the IRDA. As for the IRDA application filing, document collection and other follow up matters, professional fee is required.
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How to Renew The IRDA License After The End of Its Validity Period?
Once the IRDA license for the web aggregator expires, you’ll have to file an application for IRDA license renewal. You can do so online. While you’re required to pay the requisite fees, you don’t need to submit additional documents other than the previous IRDA registration certificate.
Becoming an insurance web aggregator in India is not a dream that many possess, but it’s a dream worth having. If you want to become one, consult with our IRDA experts. We cover end-to-end web aggregator licensing services and we will definitely make the process easier for you.