Insurance web aggregator is a type of insurance business that you can become a part of without having any prior associations with the insurance domain. The basic idea behind this unique insurance enterprise is to set up a website hosting insurance products.
Users can come to this website, peruse through these products, read their terms and conditions, draw comparisons between them, and if any one of the suits their fancy, but an insurance policy.
Because of these unique aspects of this enterprise, people have started to believe in several myths about insurance web aggregators. This article will highlight them and present to you hard facts instead.
Myth 1: Insurance companies can become insurance web aggregators
Because eCommerce is so much prevalent these days, insurance companies have started to believe that they can apply for an insurance web aggregator license and become aggregators of insurance policies. Such beliefs have caused a rejection of their IRDA applications.
Fact: Insurance companies can in fact start an e-commerce portal to sell their insurance policies online. However, they can’t obtain this right by getting the insurance web aggregator license. Instead, they need permission from the IRDA to set up an INSP or Insurance Self Network Platform.
Myth 2: You don’t need any qualification to start an insurance web aggregator
Modern India has given everyone a chance of becoming an entrepreneur, but that chance only can be utilized by those with proper qualifications. Take Insurance web aggregator for instance.
There are entrepreneurs who want to build this platform without any knowledge about the regulations of insurance web aggregation.
They believe that because the applicant has to be someone who isn’t associated with the insurance sector, they can apply for the IRDA web aggregator license without any issue.
Fact: You do need the right qualification to start an insurance network platform. It’s known as Insurance web aggregation training.
Read Other Useful License: LMPC Certification
The principal officer of your company, the one who would undertake the task of watching over the platform, has to go through 50 hours of said training. After completing the training, he has to clear the IRDA examination. Only then, will he be given the right to become an insurance web aggregator.
Myth 3: Insurance web aggregator doesn’t require any capital
There are many businesses in India that you can start without any capital. Because of the government’s inclination to promote such businesses, many believe in the myth that the same extends to the insurance web aggregation domain.
Fact: To become an insurance web aggregator, you need to meet the specific minimum capital requirements. These requirements are subject to the regulations of IRDA policies and can change with each passing year.
Nevertheless, starting an insurance web aggregation without proper capital behind is an impossibility.
Myth 4: Insurance web aggregation portal can be used to market insurance policy of the highest bidder
Many mistake insurance web aggregator platforms for a bidding platform. That belief drives them to commit mistakes such as promoting the insurance policies of a particular insurance company that has hosted the most number of policies at the platform or has provided the largest percentage commission.
Fact: Insurance web aggregator is not an insurance marketing platform. You’re not allowed to promote any single insurance company’s insurance policy.
All you’re allowed to do is show insurance policies and their terms and conditions to your visitors. The task of comparing the policies and choosing it falls to them (your customers).
Myth 5: You can obtain insurance broker license without any assistance from the consultants
This is one belief harbored in the hearts of many insurance entrepreneurs. Firmly believing in the Aatmnirbhar movement, these entrepreneurs try to do everything on their own.
Simply put, they put the thought of getting aid aside and apply for an insurance web aggregator license by themselves. With time, the regulatory tasks become so cumbersome that their application is rejected.
Fact: Getting an insurance web aggregator license is a time-consuming task. Every step within this task requires the special attention that you can afford to give it because of the nuanced nature of your business.
Thus, you need to delegate the IRDA license process to the experts.
If you are ready to not believe in these myths and obtain the insurance web aggregator license based on facts, consult with Registrationwala.
You don’t money to become an insurance web aggregator. It’s a myth. Here are 5 myths about insurance web aggregators in India.