IRDA web aggregators are licensed by India’s Insurance Regulatory Development Authority 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 avoid. In this article, we are going to dive into both points.
An Insurance web aggregator License is issued to a company capable enough to run a website where visitors 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, we will cover the dos and don’ts of Web aggregators licensed by IRDA through this article.
Also Read: How to Appoint a Principal Officer for Insurance Web Aggregator
Do's 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:
- The license holders have signed the service agreement by displaying the information related to insurers’ products with home.
- 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 centers, hosting, etc., comply with the security standards and regulations of web aggregator license.
- Ensuring that the information about the generated leads is securely transferred to the insurers using 128-bit encryption.
- Ensuring that all the underlying systems of the insurance web aggregator website, including hardware, software, lead management system, data center, hosting, is audited by CERT-in impaneled Information Securit8y Auditing Organizations every year.
- The insurance web aggregator must submit an Auditor-issued statutory certificate and an annual report to India’s Insurance Regulatory Development Authority every year. The web aggregator license holder will also ensure that the said certificate complies with 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.
- Any advertising is related to a product or service about insurance policies or a product or service outside of the insurance policies domain.
- Operating multiple insurance web aggregator websites.
- Tying up with unregistered or unapproved websites or business entities for lead generation.
- Operating the websites of other commercial, financial, or marketing nature or using different tools such as social media sites, etc., for product comparison.
- Working in any manner not mentioned in the IRDA issued Insurance web aggregator business model provisions.
Getting an Insurance Web Aggregator License is difficult, but retaining it is more problematic. That’s why it’s essential to know the activities that you’re allowed to partake in and the ones you should stay away from. If you still are looking for answers, reach out to our IRDA consultants for more info.