Web aggregators compile insurance policy information from various sources and companies and present it on their website. This allows potential buyers to easily compare policies. IRDAI regulates web aggregators and has defined their permitted activities such as displaying policy comparisons and transmitting customer leads to insurers. To be licensed as a web aggregator, entities must meet requirements such as a principal officer trained in insurance and a minimum net worth. Licensed web aggregators can then perform services like comparing products and generating customer prospects for insurance companies.

1. INSURANCE WEB
AGGREGATORS
By Jaswanth Singh G Insurance
Domain Consultant and Faculty for
Insurance and Pension Studies

2. CHANNELS OF DISTRIBUTION
BROADLY CLASSIFIED IN TO 3 CATEGORIES BASED ON
POLICYHOLDERS THEY SERVE, THE RELATIONSHIP
WITH THE INSURER AND THE RANGE OF PRODUCTS
THEY SELL NAMELY
1. INSURANCE BROKERS
2. INSURANCE AGENTS
3. OTHER INSURANCE INTERMEDIARIES NAMELY
i. CORPORATE AGENTS
ii. WEB AGGREGATORS
iii. INSURANCE MARKETING FIRM
iv. COMMON SERVICE CENTER – SPECIAL PURPOSE
VEHICLE (CSC –SPV)
v. POINT OF SALES (POS)

3. WEB AGGREGATORS
 WEB AGGREGATORS COMPILE AND PROVIDE INFORMATION
ABOUT INSURANCE POLICIES OF VARIOUS COMPANIES ON A
WEBSITE. IN OTHER WORDS, THEY COLLECT DATA FROM
VARIOUS SOURCES AND DATABASES, SUCH AS INSURANCE
COMPANY WEBSITES, AND COMPILE THIS DATA TO MAKE IT
PRESENTABLE TO ANY POTENTIAL INSURANCE POLICY BUYERS
 ONLINE ACCESS TO LIFE INSURANCE PLANS IS ALSO AVAILABLE
THROUGH INSURANCE AGGREGATORS WHO ARE ESSENTIALLY
INSURANCE BROKERS HAVING AN ONLINE PRESENCE. THE
WEBSITES OF INSURANCE AGGREGATORS WORK AS
COMPARISON SITES AS THEY SHOWCASE PLANS OF VARIOUS
INSURERS.
 THE OBJECTIVE OF THE INSURANCE WEB AGGREGATOR
REGULATIONS IS TO SUPERVISE AND MONITOR WEB
AGGREGATOR AS AN INSURANCE INTERMEDIARY WHO
MAINTAINS A WEBSITE FOR PROVIDING INTERFACE TO THE
INSURANCE PROSPECTS FOR PRICE COMPARISON AND
INFORMATION OF PRODUCTS OF DIFFERENT INSURERS AND
OTHER RELATED MATTERS.

4. ACTIVITIES AND FUNCTIONS OF WEB
AGGREGATORS
 IRDAI HAS CLEARLY DEFINED AND GIVEN A STRUCTURE TO SOME OF THE
IMPORTANT ACTIVITIES AND FUNCTIONS OF THE WEB AGGREGATORS. THEY INCLUDE
- DISPLAY OF PRODUCT COMPARISONS ON WEB-SITE AND THEIR CONDITIONS,
TRANSMISSION OF LEADS BY WEB AGGREGATOR TO THE INSURER IN A SPECIFIED
MANNER, THE MANNER AND PROCESS OF SALE OF INSURANCE ONLINE BY WEB
AGGREGATORS, SALE OF INSURANCE BY TELE-MARKETING MODE AND OTHER
DISTANCE MARKETING FOR SOLICITATION OF INSURANCE BASED ON THE LEADS
GENERATED FROM ITS DESIGNATED WEBSITE. EVEN THE PAYMENT OF
REMUNERATION OF AN INSURANCE WEB AGGREGATOR SHALL BE GOVERNED BY THE
REGULATIONS AS SET BY IRDAI .
 THE SOLICITATION OF LOW-COST ULIPS BEING ALLOWED TO BE SOLD ONLINE ON
WEB AGGREGATOR'S PLATFORM UP TO THE LIMIT OF RS 1.5 LAKH PREMIUM,
REMUNERATION FOR RENEWAL OF INSURANCE POLICIES SUCH AS MOTOR
INSURANCE, HEALTH INSURANCE AND OTHER SIMILAR POLICIES HAS BEEN ALLOWED
AND THE REMUNERATION THROUGH REWARD FOR EFFORTS EXPENDED IN SELLING
ZERO COMMISSION PRODUCT IS NOW BEING PROVIDED.
 CONCLUSION
SIMILAR TO BUYING INSURANCE PRODUCTS OFFLINE THROUGH AN INSURANCE
AGENT OR A BROKER, BUYING LIFE INSURANCE ONLINE ALSO NEEDS TO BE AN
INFORMED DECISION. IT'S BETTER TO SPEAK TO THE WEB AGGREGATOR EXECUTIVE
BEFORE INITIATING THE TRANSACTION ONLINE SO AS TO NOT END UP BUYING THE
WRONG PRODUCT FOR YOUR SPECIFIC NEED. AND, APPROACHING THEM AFTER
DOING AT LEAST A BIT OF RESEARCH ON WHAT YOUR REQUIREMENTS ARE, WILL
MAKE THE PROCESS MUCH MORE SEAMLESS, INFORMATIVE AND FREE FROM
SURPRISE

5. ELIGIBILITY CRITERIA FOR LICENSE OF
THE WEB AGGREGATOR KEY POINTS
 PRINCIPAL OFFICER OF THE WEB AGGREGATOR
SHOULD HAVE UNDERGONE 50 HOURS OF TRAINING
INITIALLY AND 25 HOURS OF RENEWAL TRAINING AT
THE END OF EVERY THREE YEARS THEREAFTER.
 PRINCIPAL OFFICER/DIRECTORS/
PROMOTERS/SHAREHOLDERS/KEY MANAGEMENT
PERSONNEL SHOULD FULFILL THE CONDITIONS IN THE
FIT AND PROPER CRITERIA NOTIFIED BY THE
AUTHORITY FROM TIME TO TIME.
 WEB AGGREGATOR SHALL NOT BE
LICENSED/REGISTERED AS INSURANCE AGENT,
CORPORATE AGENT, MICRO INSURANCE AGENT, TPA,
SURVEYOR OR ANY OTHER INTERMEDIARY
 WEB AGGREGATOR SHALL NOT BE RELATED AS
INSURER, INSURANCE BROKER, CORPORATE AGENT,
MICRO INSURANCE AGENT, TPA, SURVEYOR OR ANY
OTHER INTERMEDIARY

6. SOME KEY FEATURES OF
WEB AGGREGATOR
 CRITERIA: A MINIMUM NET WORTH OF RS 25 LAKH IS REQUIRED TO WEB
AGGREGATORS. THE APPLICANTS NEED TO APPLY TO IRDA WHICH WILL GRANT
LICENSE TO CARRY OUT WEB AGGREGATOR AS WELL AS TELEMARKETING BUSINESS
IN INDIA. THIS LICENSE WILL BE ISSUED FOR THREE YEARS SUBJECT TO RENEWAL
FOR A REQUISITE TIME PERIOD. IRDAI WILL CHARGE AN ANNUAL FEE OF RS 10000
FROM WEB AGGREGATORS.
 ANNUAL LICENSE SHOULD BE PAID WITHIN 15 DAYS OF THE FINALIZATION OF
ACCOUNTS OR 30TH OF SEPTEMBER WHICH EVER IS EARLIER
 STRUCTURE: WEB AGGREGATORS SHOULD HAVE TO APPOINT A PRINCIPAL OFFICER
WHO HAS UNDERGONE TRAINING FOR AT LEAST 50 HOURS AND 25 HOURS OF
RENEWAL TRAINING AT THE END OF EVERY THREE YEARS. THE EMPLOYEES OF WEB
AGGREGATORS INVOLVED IN INSURANCE SOLICITATION AND VERIFICATION SHOULD
HAVE TO COMPLETE THE 50 HOURS OF THEORETICAL AND PRACTICAL TRAINING ON
INSURANCE FROM ANY RECOGNIZED INSTITUTES. TELE-CALLERS SHOULD ALSO
NEED TO UNDERGO NECESSARY TRAINING OF 25 HOURS.
 DUTIES: APART FROM COMPARING PRODUCTS, THESE WEBSITES CAN SHARE
CONTACT DETAILS OF CUSTOMERS WHICH THEY TRACK THROUGH LEAD
MANAGEMENT SYSTEM (LMS) IN ORDER TO GENERATE PROSPECTS FOR INSURANCE
COMPANIES. HOWEVER, THEY WILL HAVE TO PROMINENTLY DISPLAY A DISCLAIMER
OF THIS IN THEIR WEBSITES. THESE PORTALS CAN SHARE THE LEAD WITH THREE
INSURERS IN THE SAME CLASS OF BUSINESS.