Insurance Web Aggregator

If you’re an insurance buyer in India, you’re probably familiar with the hassle of finding the right insurance policy that fits your needs and budget. With the abundance of insurance providers in the market, it can be a daunting task to navigate through the various plans and policies available. Fortunately, the Insurance Regulatory and Development Authority of India (IRDAI) has come up with a solution – the Insurance Web Aggregator License (IWAL). In this blog post, we’ll explore what the IWAL entails and how it aims to simplify the insurance buying process for consumers in India.

1. Overview of Insurance Web Aggregators in India

Are you looking to start an online insurance business in India? Then you must obtain an Insurance Web Aggregator License. An Insurance Web Aggregator is a platform where users can compare and purchase insurance policies. With the rise in demand for insurance policies, it can be challenging for people to choose the right one, leading to potential negative impacts on their lives. As an Insurance Web Aggregator, you can provide people with an online solution to alleviate this challenge. It is not an easy process to obtain the license, but with Enterslice, you can get end-to-end assistance and guidance, from filing the application and arranging necessary documents to obtaining the license. Stay on top of the game and become an Insurance Web Aggregator and offer people the security they need.

Insurance Web Aggregators are regulated under the Insurance and Development Act 1999. To operate as an Insurance Web Aggregator, you need to fulfill specific eligibility criteria. You must be a registered company or an LLP with the required memorandum and Articles of Association/LLP agreement. The primary objective of an Insurance Web Aggregator is to aggregate and showcase insurance products of different insurance companies in one place. Web aggregators are not just for displaying multiple insurance products; they provide a comparison module for customers to compare policies. By providing a comparison of policies, it enables customers to choose the one that suits their needs. [1][2]

Explanation of what an insurance web aggregator is

Looking for the best insurance deals can be a hassle. Fortunately, there’s an easier and more convenient way to compare different insurance products from various providers. Enter insurance web aggregators. Simply put, an insurance web aggregator is a middleman that maintains a website where potential customers can compare insurance products and prices from different insurers. By using an insurance web aggregator, you can save time and effort in looking for the best insurance deal that fits your needs and budget. In India, there are regulations to supervise and monitor insurance web aggregators, so you can trust that the information provided is accurate and reliable.

To obtain an insurance web aggregator license, you need to follow certain steps and requirements. First, you need to secure a No Objection Certificate (NOC) from the Insurance Regulatory and Development Authority of India (IRDAI). This certificate is used to register the proposed name of your firm with the Registrar of Companies. Aside from the NOC, you also need to submit an application to the IRDAI. You should also prepare the necessary documents and pay the non-refundable application fee.

One of the crucial requirements for obtaining an insurance web aggregator license is having a qualified Principal Officer. This person is exclusively responsible for the activities of the insurance web aggregator. They should possess the eligible educational qualifications specified by the IRDAI and have passed an examination and training recognized by the authority. Moreover, insurance web aggregators should have a minimum paid-up capital of INR 25 lakhs and maintain a net worth equivalent to 100% of the minimum paid-up capital requirements at all times.

Foreign investment is also permitted in the insurance web aggregation business, with a limit of up to 49% of the paid-up equity capital of your firm. A certificate of registration issued by the IRDAI is valid for three years, after which it can be renewed. Overall, obtaining an insurance web aggregator license can be a tedious process, but with the help of reliable consultants, you can navigate the process smoothly and efficiently. [3][4]

Requirements for obtaining an insurance web aggregator license in India

To obtain an insurance web aggregator license in India, the Insurance Regulatory and Development Authority of India (IRDAI) has set certain requirements. First, you need to apply for the NOC or no objection certificate from the Authority. This certificate allows you to register the proposed web aggregator firm name with the Registrar of Companies. You will need to submit the proposed name(s) of the firm, address proof, PAN card, and names of the proposed directors to receive NOC

Next, you need to apply for certification of registration (COR) with IRDAI. To do so, you need to familiarize yourself with the IRDAI (Insurance Web Aggregators) Regulations 2017 and submit the application form A, paying the non-refundable application fee of Rs. 10,000. Additionally, you are required to submit all necessary documents/declarations as mentioned in Form B and the regulations.

The Principal Officer of the applicant is exclusively responsible for the activities of the insurance web aggregator and should have completed specified training on insurance from an institution recognized by the Authority and passed an examination recognized by the Authority. The minimum paid-up capital requirement for an insurance web aggregator is Rs. 25 lakh, and the net-worth of the aggregator shall not fall below 100% of the minimum capital requirements. Lastly, foreign investors including portfolio investors can hold equity shares or contribution of the insurance web aggregator up to forty-nine percent of paid-up equity capital of the aggregator at any time. [5][6]

Benefits of having an insurance web aggregator license

If you are planning to enter the insurance industry, having an insurance web aggregator license in India can benefit you in many ways. With this license, you can provide a digital platform that enables buyers to compare different insurance products of various companies. Clients can make more informed decisions by comparing the premiums, benefits, terms, and conditions of different policies, saving time and money.

Since the entire process of buying insurance is done online, there is no need to worry about geography. Clients from all over India can buy insurance policies through your website, thus becoming more accessible to people in rural areas where there are no insurance agents. This means you can reach a more extensive customer base and provide them with more customized insurance solutions that could be a perfect fit for their specific requirements.

By having an Insurance Web Aggregator License in India, you will also enjoy the benefits of transparency and regulation. This is because you will be a part of a system that is strictly monitored and controlled by the Insurance Regulatory and Development Authority of India (IRDAI). This ensures that all agents and aggregators provide clear and accurate information concerning policies and that clients are protected from the unnecessary charges that were once levied by agents.

In conclusion, the advantages of having an insurance web aggregator license in India are manifold. With it, you will be able to offer your clients fast and easy comparisons between policies. Customers can buy policies from anywhere in India, and you can reach a more extensive customer base in rural areas. Additionally, you will enjoy the benefits of transparency and regulation, ensuring that all insurance processes are fair and regulated. [7][8]

Process for obtaining an insurance web aggregator license

Are you planning to set up an Insurance Web Aggregator firm in India? Here’s what you need to know about the process of obtaining the necessary license. Firstly, as an insurance intermediary, you must comply with the IRDAI (Insurance Web Aggregators) Regulations 2017. You will require a NOC (No Objection Certificate) from the authority, which can be obtained by submitting a request along with the relevant documents, such as the proposed firm’s name, the address proof, PAN card, and names of proposed directors.

Once you have the NOC, you can apply for the Certificate of Registration (COR) by following the procedure of submitting a filled-out Form A, remitting a non-refundable application fee, and providing all the necessary documents, as mentioned in Form B and regulations. Note that incomplete applications may be rejected; however, applicants are given the opportunity to rectify any errors before rejection.

The Principal Officer of the applicant should possess the eligible educational qualifications as specified in Form C of Schedule I, and should have completed the training on insurance recognized by the Authority to pass an examination conducted by an examining body recognized by it. Also, you need to meet the minimum capital requirement of Rs. 25 lakhs and maintain a net worth at no time falling below 100% of the minimum capital required.

Foreign direct investment (FDI) is allowed in Insurance Web Aggregation business up to forty-nine per cent of paid-up capital of the firm at any time or as prescribed by the Central Government. Finally, the Certificate of Registration is valid for three years, after which it is subject to suspension or cancellation pursuant to regulations. [9][10]

Regulatory framework for insurance web aggregators in India

Are you interested in becoming an Insurance Web Aggregator in India? It’s important to understand the regulatory framework surrounding this industry. The IRDAI (Insurance Web Aggregators) Regulations 2017 were introduced to supervise and monitor the operations of Insurance Web Aggregators. These regulations provide guidelines for obtaining a NOC (no objection certificate) and a Certificate of Registration (COR) from the IRDAI. To apply for a COR, an applicant must submit all necessary documents and declarations along with a non-refundable application fee of Ten Thousand rupees. The Principal Officer of the proposed aggregator should possess specified qualifications and undergo mandatory training. The minimum capital requirement for Insurance Web Aggregators is Rupees Twenty-Five Lakh. The net-worth of the aggregator cannot fall below 100% of the minimum capital requirements. Foreign investment is also allowed, but cannot exceed forty-nine per cent of the paid-up equity capital. A COR is valid for three years from the date of issue unless suspended or cancelled by the IRDAI. [11][12]

2. Requirements for Registering as a Web Aggregator

Are you interested in becoming an insurance web aggregator in India? To register and obtain a license, you must meet certain requirements. First and foremost, you must be a company registered under the Companies Act 2013 or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act 2008. It’s important to note that the partners of the LLP must be Indian residents. Your company or LLP must have it stated in its Memorandum of Association (MoA) that the web aggregation business of insurance products is its main object. Additionally, you must not be engaged in any other business other than insurance web aggregation.

Furthermore, you cannot be appointed or registered as an insurance/microinsurance agent, corporate agent, surveyor and loss assessor, Third Party Administrator (TPA), insurance marketing firm, or any other intermediary under the regulations of the Insurance Regulatory and Development Authority of India (IRDAI). You must not have a referral arrangement with an insurer, and your Principal Officer must have the qualifications specified in Form C of the Regulations, undergone training and the examination specified by the IRDAI. Additionally, your Principal Officer, promoter, director, partner, shareholder, or key managerial personnel must have fulfilled the conditions of the fit and proper criteria stated in Form D of the Regulations.

To secure an insurance web aggregator license, it’s essential that the person employed by the insurance web aggregator or a telemarketer for procurement and insurance solicitation through Telemarketing and Distance Marketing mode has passed the examinations specified by IRDAI. Furthermore, you must not have violated the obligations and code of conduct specified in Form V and Form W of the Regulations. Your application for an insurance web aggregator license/registration certificate should not have been rejected by the IRDAI, and you should not have withdrawn the application for any reason during the preceding financial year from the date of the application. [13][14]

3. Role of Insurance Web Aggregators in the Insurance Industry

As a potential Insurance Web Aggregator, you may wonder about the role of Insurance Web Aggregators in the Insurance Industry. Essentially, an Insurance Web Aggregator acts as an insurance intermediary that allows insurance prospects to compare prices and learn more about products from different insurers, as well as other related matters. These online platforms provide customers with a user-friendly interface to access critical information. Insurance Web Aggregators aim to simplify the insurance process for consumers while providing transparency in pricing. They also play a vital role in promoting competition in the insurance industry, motivating insurers to create competitive pricing and product offerings. Additionally, Insurance Web Aggregators can educate consumers about the importance of insurance coverage, helping to increase the overall penetration of insurance in India. [15][16]

4. Eligibility Criteria for Insurance Web Aggregator License

To become an Insurance Web Aggregator in India, you must meet certain eligibility criteria. Firstly, you can apply as either a company or an LLP. Your company or LLP should have a memorandum and articles of association or LLP agreement stating your objective of entering the insurance industry as a web aggregator. Secondly, you must have a minimum net worth of Rs. 25 lakhs and maintain it for the entire duration of the license. Moreover, as an applicant, you must not have any criminal background and have a clean record. Additionally, you must also have adequate infrastructure to carry out your operations smoothly, including trained manpower, technology infrastructure, and office space. Lastly, all directors and key employees of the applicant company or LLP should meet the ‘fit and proper’ criteria specified in the IRDAI regulations. These eligibility criteria ensure that only genuine and credible companies or LLPs are allowed to enter the insurance web aggregator industry. [17][18]

6. Fees and Charges for Insurance Web Aggregator License

If you’re thinking of obtaining an Insurance Web Aggregator License in India, it’s important to be aware of the fees and charges involved. The application fee for registering as a web aggregator is non-refundable and amounts to INR 10,000 which needs to be paid by demand draft drawn in favour of ‘Insurance Regulatory and Development Authority of India’ payable at Hyderabad. You can also opt to remit this fee through electronic fund transfer to IRDAI. Besides this, you will be required to pay annual renewal fees as well. The fees for the same and any other charges are subject to change as per the discretion of IRDAI. [19][20]

7. Code of Conduct and Obligations for Insurance Web Aggregators

To become an insurance web aggregator in India, it is important to follow certain regulations. The Insurance Regulatory and Development Authority of India (IRDAI) has established rules that must be adhered to by all web aggregators. These regulations include securing a NOC (no objection certificate), submitting an application for Certification of Registration (COR), possessing a minimum paid-up capital of Rs. 25 lakh, and employing a Principal Officer who has completed IRDAI-recognized training.

In addition to these requirements, insurance web aggregators are expected to adhere to specific codes of conduct and obligations. The IRDAI directs that no insurer or web aggregator can push or promote a particular insurance product. It is also mandatory for web aggregators to serve the interests of the insurance prospects by providing them with product comparisons and details.

Moreover, if a web aggregator has multiple insurer agreements, they must share information about the range of coverage, policy duration, premium amount, and other relevant details with potential customers. Insurance web aggregators are allowed to sell insurance through their designated website or telemarketing, but they must follow IRDAI’s payment and remuneration rules.

Another notable addition is the International Financial Services Centre Authority (IFSCA), which introduced specific rules for insurance web aggregators in January 2022. These regulations oversee License and registration of Insurance Web Aggregators in International Financial Services Centre. As a result, all insurance web aggregators functioning in this jurisdiction must comply with IFSCA regulations in addition to IRDAI rules.

Overall, insurance web aggregators hold a crucial role in the insurance industry as they act as middlemen between potential customers and insurers. Adhering to the specified codes of conduct and obligations is essential to build trust among prospects and insurers alike while ensuring a transparent environment in which to purchase insurance policies. [21][22]

8. Disqualifications and Refusals for Insurance Web Aggregator License.

To become an Insurance Web Aggregator in India, companies must obtain an Insurance Web Aggregator License from the Insurance Regulatory and Development Authority of India (IRDAI). However, not all applicants are eligible for the license. The IRDAI can disqualify or refuse a license to a company if it does not meet the required criteria. Some reasons for disqualification may include the submission of false, inaccurate, or misleading information, non-compliance with Insurance Web Aggregator guidelines, or violation of terms and conditions of the license. Furthermore, the IRDAI can refuse a license to an applicant if it does not possess sufficient financial resources, lacks technical expertise, or has a poor track record in the insurance industry. Companies applying for an Insurance Web Aggregator License must ensure that they meet all the eligibility criteria to avoid disqualification or refusal of the license. [23][24]

If you’re an insurance buyer in India, you’re probably familiar with the hassle of finding the right insurance policy that fits your needs and budget. With the abundance of insurance providers in the market, it can be a daunting task to navigate through the various plans and policies available. Fortunately, the Insurance Regulatory and Development Authority of India (IRDAI) has come up with a solution – the Insurance Web Aggregator License (IWAL). In this blog post, we’ll explore what the IWAL entails and how it aims to simplify the insurance buying process for consumers in India.