 "Insurers rush to tie-up with web aggregators")
With the Insurance Regulatory and Development Authority (Irda) finalising the guidelines for web aggregators operating in the industry, insurers are now looking to tie-up with one or more such players.
A web aggregator is a company registered under the Companies Act and approved by Irda, which maintains or owns a website and provides information on insurance products of different insurers. At present, there are eight such aggregators including accuratequotes.in. policymatra.com and MyInsuranceClub.com. Once a license is given by Irda, it is valid for three years post which they have to apply for renewal.
Anuj Agarwal, MD & CEO of Bajaj Allianz Life Insurance said that for their online channel, they are looking into a model by which the company can increase web traffic and tie it with a lead management system. "We will also consider tying up with web aggregators," he added.
The net worth required for setting up a business as on the date of application is Rs 10 lakh and the web aggregator also needs to continue to maintain the minimum net worth prescribed during the licence period.
Further, the web aggregator should not be engaged in any other business other than the main objects of the applicant and shall employ or designate a director as principal officer to manage the company on a full-time basis. The regulator also said that every web aggregator should have a professional indemnity insurance cover throughout the license period. Other financial or FMCG products cannot be displayed on the website.
Irda also proposed that the web aggregators should not display on their websites any information on products or services of other financial institutions or any other company. It has also proposed that these aggregators shall not display ratings, rankings, endorsements or bestsellers of insurance products on their websites.
Munish Sharda, MD & CEO of Future Generali India Life Insurance explained that there is a lot of action in the online space. "It is a large growing market. Various estimates say there would be 450 million internet users by 2020. The key would be having the entire infrastructure in place for right delivery to client, both product and service. We have high expectations from this web aggregator market and will participate in it," said Sharda.
A web aggregator is a company registered under the Companies Act and approved by Irda, which maintains or owns a website and provides information on insurance products of different insurers. At present, there are eight such aggregators including accuratequotes.in. policymatra.com and MyInsuranceClub.com. Once a license is given by Irda, it is valid for three years post which they have to apply for renewal.
Anuj Agarwal, MD & CEO of Bajaj Allianz Life Insurance said that for their online channel, they are looking into a model by which the company can increase web traffic and tie it with a lead management system. "We will also consider tying up with web aggregators," he added.
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Only licensed aggregators can display products and price comparisons of insurance company products. For this, each insurer is required to tie-up with the company and pay a flat fee of not exceeding Rs 50,000 per year towards each product displayed by the web aggregator in the comparison charts of its website. No charges are paid for leads to the insurer provided by the web aggregator through its Lead Management System.
The net worth required for setting up a business as on the date of application is Rs 10 lakh and the web aggregator also needs to continue to maintain the minimum net worth prescribed during the licence period.
Further, the web aggregator should not be engaged in any other business other than the main objects of the applicant and shall employ or designate a director as principal officer to manage the company on a full-time basis. The regulator also said that every web aggregator should have a professional indemnity insurance cover throughout the license period. Other financial or FMCG products cannot be displayed on the website.
Irda also proposed that the web aggregators should not display on their websites any information on products or services of other financial institutions or any other company. It has also proposed that these aggregators shall not display ratings, rankings, endorsements or bestsellers of insurance products on their websites.
Munish Sharda, MD & CEO of Future Generali India Life Insurance explained that there is a lot of action in the online space. "It is a large growing market. Various estimates say there would be 450 million internet users by 2020. The key would be having the entire infrastructure in place for right delivery to client, both product and service. We have high expectations from this web aggregator market and will participate in it," said Sharda.