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Preface: This post was originally published in 2023 and has been updated on April 12, 2025, to provide you with the most current and accurate information.
Both insurance web aggregators and insurance brokers are key intermediaries working in the insurance sector. The Insurance and Regulatory Development Authority of India (IRDAI) regulates and monitors them. If you are interested in working in the insurance sector, it is essential to know how an Insurance Web Aggregator is different from an Insurance Broker.
Going through this blog post will help you understand Insurance web aggregator vs Insurance broker and their major differences.
An insurance web aggregator works as an intermediary between the insurer and the customer. They maintain a website for the comparison of different insurance policy features such as price, claim settlement ratio, or other information about the insurance products.
They mainly collect all the information on different policies and upload it on a single online portal. Any customer who wants to compare the different plans can visit the website and can compare them easily without much hassle.
Some examples of aggregators are PolicyBazaar, InsuranceDekho, and Coverfox.
An Insurance Broker works as a middleman between the insurance company and customers. They help customers personally to select an insurance policy that suits their needs and requirements best.
Also, they guide the customers about the smallest features of the policies which are beyond the understanding of a layman. An broker offering insurance services must have a license to provide services to their clients and they can obtain it from IRDAI.
Some examples of insurance brokers are Insure Risk Management and Insurance Broking Services Pvt Ltd, ACME Insurance Broking Services P. Ltd. and Bharat Re- Insurance Brokers Pvt. Ltd. as per IRDAI website.
The following are the points that show the major differences between an insurance web aggregator and an insurance broker. By going through all the differences you can understand how important their roles are in the insurance sector:
For web aggregators, the IRDA regulations state that a company can pay up to Rs. 50 thousand annually to present their policy on the website. For insurance brokers, companies pay around 2%-8% for selling a single policy. The rate depends on state regulations.
For purchasing an insurance policy from the aggregator platform, the customer has to pay some charges which are comparatively lower. Also, they take 30% of the first-year premium for generating a lead for the business. From customers, the brokers can charge fees for insurance claims and for initiating changes.
On the aggregator platform, there is no one to suggest to you the features and best policy as per your requirements. Although they have a representative who works as a broker, they take customers to the portal for purchasing an insurance policy.
Insurance brokers connect personally with clients and suggest to them some policies as per the requirements. They assist them throughout the process.
A Limited Liability Company can become an Aggregator, and it should not be included in any other business other than the aggregator business. The company only has one certificate for insurance intermediation.
To become an Insurance Broker, the applicant first chooses the type of broker: Direct Broker, Re-insurance Broker, or Composite Broker. These insurance brokers have different types of criteria to become a broker and obtain a license.
An insurance web aggregator has an online platform. There is no one to guide you personally, and in case of any issue, the platform doesn’t take accountability because the client chooses the policy by themselves. But you can reach out to customer support with your problem.
A broker connects personally with clients so they take complete accountability if any issue arises and help them to resolve it.
Purchasing an insurance policy from the aggregator platform is easier because you can choose from multiple products on your own and do the payment online, which is quick and less time-consuming.
Selection of a policy from an insurance broker can take more time because the broker will show the policies manually as per your convenience and making payment to the broker is quick because now people are moving to the online payment system.
So, if you are looking for a personal recommendation before buying a policy then you must choose an insurance broker. And if you want to compare all the products by yourself before purchasing a policy then you must go for an aggregator.
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The difference between Aggregator and Broker is that the former maintains an online platform for comparing various policies while the latter helps customers choose the best policy depending on their needs. Before starting to provide services related to suggesting insurance policies to clients, it is mandatory for a broker to have a valid license. At Registrationwala, we assist businesses in the complete process of obtaining an insurance broker license. This service includes professional license registration support, quick license approval, a team of industry experts, and peace of mind. So, connect with our experts to get the best advice on insurance broker licenses.
Q1. Which regulates insurance aggregators and brokers in India?
A. The Insurance Regulatory and Development Authority of India (IRDAI) regulates the insurance aggregators and brokers in India.
Q2. Do I need an IRDAI license to operate as an insurance web-aggregator?
A. Yes, you require an IRDAI license if you want to operate as an aggregator.
Q3. Which regulations govern insurance web aggregators?
A. The IRDAI (Insurance Web Aggregators) Regulations 2017 govern operations of insurance web-aggregators.
Q4. Which regulations govern insurance brokers in India?
A. The IRDAI (Insurance Brokers) Regulations 2018 govern the insurance brokers in India.
Q5. Can insurance web-aggregators also act as brokers?
A. No, web-aggregators cannot simultaneously act as an insurance broker, corporate agent, or any other intermediary. They must purely function under the capacity for which they have attained the IRDAI license.
Q6. Can a Direct Broker provide Re-insurance or Composite Broker services in India?
A. No, a Direct Broker in India is not permitted to offer Re-insurance or Composite Broker services, as these services require separate IRDAI licenses and specific qualifications that a Direct Broker does not have.
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