What are the Functions of a Web Aggregator?

A web aggregator is a primarily a company incorporated under the Companies Act and approved by the Insurance Regulatory and Development Authority of India(IRDAI), which owns or maintains a website. It furnishes information on different insurance products available with different insurers and available to the clients.

Who is Web Aggregator (WAG)?

A web aggregator is a website portal or a search engine to assist a client to avail a number of insurance quotes through an electronic e-quote form from different insurers. The online Insurance Web Aggregators have entered in agreements with a number of insurance providers to present a comparative quote/price of policy based on a pre-determined list of individual needs as submitted/requested by probable clients or customers.

The Online Purchase Method of Policy through Web Aggregator

Since our country is becoming a net-savvy gradually over a period of time, e-commerce businesses have developed very fast in India. It has become so easy that one can buy anything and everything online at the click of a button and make fast payments immediately for such purchases instead of visiting personally the shop/mall etc.  Not only is this process faster, but it is also less cumbersome since everything happens at your beck-and-call and is within your control not with any agent or insurance company as such. The concept of web aggregator is used for online inquiry/shopping, wherein end consumer is able to get information and quotes on diverse financial products. Web aggregator is basically insurance portals that help one compare products, prices and enable purchase by directing one to the insurer or the insurer to one.

What is the Role of a Web Aggregator?

The prime role of Web Aggregator is to facilitate comparison across insurance products. As the Aggregators have entered into the agreements with insurers and these insurers have to provide all the relevant information pertaining to the price and products of insurance. The Web aggregators further, in turn, display such information in a set format on its website designed for their business. However, WAGs are not permitted to display certain information like ratings, rankings, endorsements or best-sellers of insurance products. They are not allowed to display any product other than insurance products, nor can they carry advertisements on such products.

IRDAI has clearly defined the important activities and functions to be performed by the Web Aggregators.

They include and are like:

• It (WAG) displays the product comparisons on the website available with various insurers so that the customer is in a position to select the best suitable to his requirement.
• It has to provide prospective buyers with the details such as the scope of coverage, the term of the policy, premium payable, premium terms and any other information which the customer seeks on all products available with them.
• It displays their conditions as put by the insurers for the product.
• It has to receive the leads and inquiries sent by the customers.
• It has to transmit the leads received to the insurer in a specified manner but clearly.
• It has to undertake such sale of insurance products and services online.
• It may resort to telemarketing mode and other distance marketing for solicitation for sale of insurance.
• It is the duty of the WAG that no inconvenience is caused to the customer in such a transaction

However, the WAG shall not

• Display any information or details pertaining to products or services offered by other financial institutions/FMCG or any product or service on its website.
• Display advertising of any type, either pertaining to any product or service including insurance product or service or other financial products or service on its Website.
• Operate multiple websites or tie up with other approved/unapproved/unlicensed entities/websites for generating the leads etc.
• Operate the websites of others like financial/commercial/marketing or sales or service entities or utilize other Social Media sites etc. for comparison of products etc.
• Operate in any other manner for the purpose of transmitting leads to any entity engaged in insurance business other than as provided by the regulation.

The primary function and motive of WAG should be merely to provide the required justified information to the potential buyer so that he is able to select and buy the product as per his requirement and choice.