As of May 2013, following are the IRDA licensed web aggregators that can operate in India.
||iGear Financial Services Pvt. Ltd.
||Accurex Marketing and Consulting Pvt. Ltd
||Great Indian Marketing Consulting Services Pvt. Ltd
||Voila Consultancy Services India Private Limited
||eMudhra Consumer Services Ltd.
||I Call Soft (P) Ltd
||Policy Mantra Insutrade Pvt. Ltd
IRDA, the Insurance regulator has issued guidelines for a new category of players – the Web Aggregators.
IRDA’s definition of Web Aggregators: IRDA defines a web aggregator as a legal entity that is
- Company registered under Companies Act, 1956 (1 of 1956)
- Approved by IRDA under the Web Aggregator Guidelines
- Owns & manages a website that provides information and online price comparison for insurance products
- Generates and sells “leads” to Insurance companies or their agents/brokers
IRDA Web Aggregator Guidelines:
- Only factual and unbiased content about Insurance products and companies to be put up
- Shall not show ratings, recommendations or best-sellers
- Clear notice to visitors that their details can/will be shared with the insurance companies/ brokers
- No advertisements or sponsored content on the web aggregators portal
- Accurate and up-to-date product comparisons should be there
- Leads can be shared with a maximum of 3 insurers, if the customer shows interest in buying but doesnt fill up any preferences
- Leads should be shared securely and within 5 days of customer’s applying online
- Leads to be charged at Rs 10/- maximum
- Flat fee of Rs 1 Lakh max for each product listed on the site
- Max of 25% of premium as sales commission for any actual sale that happens on the lead. And this will be calculated basis the actual premium collected by the insurer.
Update July 2013: IRDA has issued a new draft of guidelines seeking to build more controls around the web led distribution model in Life and Health Insurance. Web aggregators was new category that IRDA had defined in 2010/11 wherein portals doing comparison and selling leads to insurers were to comply.
The new set of draft guidelines are around increasing the realm of control that IRDA has over the web channels. Some of the key highlights of these guidelines are:
- A web aggregator cannot buy leads or have tie-ups with other portals
- Web aggregators cannot do comparison on social media sites
- Need to have a Leads Management System (LMS) which needs to undergo an IT audit every 6 months