Providing insurance policies online is a big business. However, the allure of so much profits and the relative “no-competition” market pushes prospects in filing the application without knowing what it takes. If you’re one of them, don’t worry. You might not be up for it now, but you’ll be, once you know the eligibility to become an Insurance Web Aggregator.
Insurance Web Aggregator: Collector, Presenter and Seller of Insurance Policies
With so many insurance policies floating around, people have a hard time finding the right one for them. An Insurance Web aggregator, who is the holder of Insurance web aggregator license from the Reserve Bank of India, provides a solution. By acting as a web aggregator of insurance policies, he puts all the insurance policies platform where:
- Users can browse the insurance policies.
- Compare them and select the one that suits their requirements, and
- Purchase them.
Because the Insurance web aggregator provides a tri-fecta of services, one has to be eligible to become.
Eligibility Criteria for an Insurance Web aggregator
Following are the eligibility criteria, a checklist to take care of before you apply for Insurance web aggregator license:
- Company or LLP Registration before applying: Establish a business entity which is either a company or an LLP before applying for the license.
- Mention the essentials in the documents: In the documents of the LLP or company, mention that acting as a insurance web aggregator is your primary objective.
- You shouldn’t be a person prior associated to the insurance industry. If you’re any of the following, you can’t apply for the license:
- A Corporate Agent
- Insurance Agent
- Microfinance Agent
- Loss Assessor
- Micro Insurance Agent; or
- A TPA.
- Sign a referral agreement: Before starting as an insurance web aggregator, you must have a referral agreement signed with the insurer.
- Only one insurance certificate: If you’re a prior holder of insurance web aggregator license, you won’t be getting another one.
- Knowledgeable principle officer: Your principle officer (CEO of the company or the primary functionary of the company) should have the necessary qualifications for conducting a business as complex as insurance web aggregation. Also, they should have training and certification from the RBI sponsored authority that conducts Insurance Web aggregation examination.
- Be Fit and Proper: Fit and Proper is a court criteria that focuses on insuring the individuals running the business have a sound mental faculties. That’s why, you and your partners, have to follow the fit and proper criteria as per the forms.
There are 7 ways you have to become eligible before you can apply for the EPR License. Now that you know them, better start to follow them to apply for the license to become a web aggregator.