IRDA web aggregator are licensed by Insurance Regulatory Development Authority of India to provide insurance web aggregations services.
There are some specific duties of an aggregator that he has to perform. On the other hand, IRDA has also highlighted activities that an aggregator should stay away from. In this article, we are going to dive into both points.
An Insurance web aggregator License is issued to a company capable enough to running a website at which the visitor can come, look at, choose and buy insurance policies. Such a company has to be impartial in its approach to insurance web aggregator services. However, when it comes down to it, there is a fair bit of confusion around what a business web aggregator is allowed to do, and what is he don’t. Thus, through this article, we are going to cover the dos and don’ts of Web aggregator licensed by IRDA.
Dos of an IRDA web aggregator
Following is the list of activities that those who have paid the IRDA web aggregator license fees, and have successfully gotten licensed are allowed to do:
- Displaying the information on their website related to the products of insurers with home the license holders have signed the service agreement.
- Providing lead generation services to the insurers.
- Ensuring that all the underlying systems of the insurance web aggregator website including hardware, software, lead management system, data centres, hosting etc. are in compliance with the security standards and regulations of web aggregator license.
- Ensuring that the information pertaining to the generated leads is transferred to the insurers in a secure manner using 128-bit encryption.
- Ensuring that all the underlying systems of the insurance web aggregator website including hardware, software, lead management system, data centre, hosting is audited by CERT-in empanelled Information Securit8y Auditing Organizations on a yearly basis.
- The insurance web aggregator must submit an Auditor-issued statutory certificate along with an annual report to the Insurance Regulatory Development Authority of India on an annual basis. The web aggregator license holder will also have to make sure that the said certificate complies to all the provisions mentioned in the IRDA rulebook.
Don’ts of an IRDA web aggregator
Following is the list of activities that under no circumstance, you should take part in as an insurance web aggregator:
- Displaying any information or products from other Financial Institutions or FMCG that have nothing to do with insurance policies of any kind.
- Advertising of any kind, either related to a product or service pertaining to insurance policies or a product or service outside of insurance policies domain.
- Operating multiple insurance web aggregator websites.
- Tying up with unregistered or unapproved websites or business entities for the purpose of lead generation.
- Operating the websites of other commercial, financial or marketing nature or use other tools such as social media sites etc. for product comparison.
- Operating in any manner not mentioned in the provisions of IRDA issued Insurance web aggregator business model.
Getting IRDA web aggregator license is difficult, but more difficult is retaining it. That’s why, it’s important to know the activities that you’re allowed to partake in and ones you should stay away from. If you still are looking for answers, reach out to our IRDA consultants for more info.