Why there are not many insurance web aggregator in India?

Insurance businesses are thriving. People’s desire to make their future secure have made entrepreneurs look at insurance market with the eyes of avarice. When you have tech oriented insurance services such as insurance web aggregator, you have a glorious icing over this profitable cake.

But despite that, there are not many insurance web aggregators in India. Why is that?

This article drills deep into this question in the quest of finding actionable answers.

Lack of Awareness For Insurance Web Aggregator

Awareness is what informs people about something. It’s the very core of any service that exists in India. However, not much of that exists for insurance web aggregator.

While the government has launched many notifications to inform people about this type of business, the language used is quite technical. As a result, most people tend to not look at the information. Thus, people are unaware of its importance.

It takes time to train

Becoming an aggregator is not simple as starting a shop. Insurance as a business is governed under the IRDA or Insurance Regulatory Development Authority of India.

This government body wants the insurance policy sellers to go through proper training before they can provide their services. Unfortunately, getting this training is a long and tedious affair.

To get an Insurance web aggregator license – the permission to become an insurance web aggregator – the applicant needs to take 50 hours of Insurance training. ILD License

Somehow, insurance novices don’t think it’s worth going through this training, even though it unlocks the possibility of tech based insurance services.

Lack of simplified knowledge in insurance web aggregator

Insurance Web aggregator is a simple term. It means aggregating insurance policies of several insurers and displaying them online where users can browse them, compare between them, and then buy the insurance policy that suits their requirement.

However, when we dive deep into the regulations of this business, we didn’t find anything that a lay person can understand simply.

The authority (IRDA) stressed upon every little detail too much – causing people to get confused about which details should matter to them the most. As a result, those who were even remotely interested in the license, started to ignore it.

Introduction of Insurance Self Network Platform

Insurance Self Network Platform or ISNP was introduced by the IRDA after realizing the potential of insurance e commerce.

It basically provides insurance brokers, insurance companies and corporate agents to start a website on which they can display the insurance services to the users.

Basically, it enables the same services as an insurance web aggregator. It has steered the entrepreneurs into a different direction when it comes to insurance business.

Conclusion

People aren’t aware of insurance web aggregator as a business. When you combine it with lengthy training, lack of simplified knowledge and presence of a much better option known as ISNP, you realize the lack of insurance web aggregators in India.

However, that’s not to say that insurance web aggregator license is worthless. You should opt for it if you want to start an insurance without completely entering the insurance domain. And when you make that choice, our experts would be here to assist you. 

Why there are not many insurance web aggregators in India? There are many reasons why Insurance web aggregator, despite its potential, is largely ignored by insurance entrepreneurs. Read this blog to know about them.