An Insurance Web Aggregator is an online aggregator of Insurance Policies of like nature from different Insurers put forth for comparison and policy purchase. To become a licensed web aggregator, every Aggregator applicant must get a Web Aggregator license from the IRDAI. The IRDAI sets out the rules and regulations for running a Web Aggregator in the Insurance Market. It also stipulates the duties and responsibilities expected of a licensed Insurance Web Aggregator in the Insurance market.
Therefore, in this article, we have detailed to you the duties and functions of an Insurance Aggregator in the Insurance Market as laid by the IRDAI from time to time. Let us look at them one by one.
Website Information Display by the Insurance Web Aggregator
The Web Aggregator must display Information on their designated website about Insurers’ products with whom the Web Aggregator has signed the agreement. The signed agreement signifies the tie-up between the Insurer and the Web Aggregator. The Aggregator has agreed to showcase the policies of the Insurer for comparison with like policies of other Insurers on its website.
Lead Generation by the Insurance Web Aggregator
The Web Aggregator must carry out Lead Generation activities for the Insurance Company. When entering into an agreement with the Insurer, the Web Aggregator promises to bring leads when the Insurer’s policies participate in such comparisons on the Aggregator’s website.
Ensure Information Systems are compliant
The Web Aggregator must ensure that the Information Systems, including the following, must comply with the generally accepted information security standards and procedures in India from time to time.:
- Aggregation Portals
- Lead Management System
- Data Centers hosting the Portal or the Lead Management System
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Secured Data Transmission by Insurance Web Aggregator
The Web Aggregator must ensure that the leads and other data are transmitted to the Insurers using secured layer data encryption technologies such as 128-bit encryption.
Insurance Web Aggregator using Authorized Payment Gateways
The Web Aggregator must use only RBI-registered payment gateways. These gateways must be used to collect as well as transfer premiums to insurers. The Insurer authorizes only the Insurance Aggregator to collect the premium on their behalf.
Certified Audit of the Information System
The Web Aggregator must get the information systems, with both its hardware and software, also including the following, hosted and audited by a CERT-In impaneled Information Security Auditing Organization:
- Aggregation Websites
- Lead Management System
- Data Centers hosting the websites / Lead Management System
They must conduct the audit once in a financial year. Afterwards, the Aggregator must submit a copy of the Audit Certificate or Report to the Regulating Authority and the Insurers. These Insurers are the company with whom the Insurance Aggregator has entered into an agreement. The Aggregator must submit the copy within 15 days from the date of its receipt.
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Statutary Auditor Certificate
The Insurance Aggregator must submit a certificate from the statutory auditor annually. They must also submit the annual report that the Insurance Aggregator is in compliance with all the regulatory provisions. The compliance must also be with the framework of the Insurance Regulatory and Development Authority of India (Insurance Web Aggregators) Regulations of 2017 during the previous fiscal year.
If you are interested in knowing more about the regulations regarding the Insurance Aggregator or their registration process, then you can connect with the Regisatrationwala.
