Currently, there are twenty-four Insurance companies in India, but how do you know which company offers you the best service as per your convenience? So, IRDA introduced the solution to...
The insurance scale has rapidly grown over the years. As Entrepreneurs look upon a better and safe future of their business, they prefer investing in various insurance policies to get surety of the same. It has subsequently increased the number of insurance brokers and web aggregators in the market. In case you are also looking for an insurance mediator to safeguard your next project, then you need to know the difference between an insurance broker and a web aggregator. Let’s put a light upon the roles and responsibilities of a web aggregator and an insurance broker, which will give you the clarity to hire a broker or depend upon an aggregator.
Who is an Insurance Broker?
An insurance broker acts as an intermediary amid the potential clients of insurance policies and the insurance companies. He is someone who holds competency in risk management and insurance.
Key Responsibilities of an Insurance Broker
Here is the list of things that insurance brokers ought to perform as per (IRDA) Insurance Regulatory & Development Authority regulation 2002:
- To gather comprehensive information about the client’s business and risk management philosophy.
- Inscribe all the data related to the client’s business needs for giving a clear picture to the other party, i.e., an insurance company.
- Providing precise guidance on the insurance terms and cover to the client.
- To consistently keep an update of the insurance markets that may be applicable.
- To submit quotations provided by the insurance companies for the client’s consideration.
- To provide prerequisite underwriting information required by the insurance company in assessing the risk and set the pricing terms and conditions for cover.
- To respond promptly on orders from a client, rendering him written acknowledgment and progress report.
- To give the right assistance to clients in paying the premium as guided under section 64VB of Insurance Act, 1938 (4 of 1938).
- To facilitate the process of risk management for clients.
- Assist in the negotiation of claims and to maintain proper records of those claims.
Why should you choose an Insurance Broker?
There are several reasons to choose an insurance broker; the most important ones as follows:
- Access to the Best Insurers
Since insurance brokers are experts; they have complete knowledge of the insurer market. Having worked with numerous insurance providers, an insurance broker presents you with multiple best options to fit different insurance needs like car or home. The availability of various offerings gives you the leverage to get your home insurance from one provider and car insurance from another. As the entire insurance cover process goes through the broker, it helps you save money in the long run.
- Understands your Needs
A reliable insurance broker will focus on understanding your requirements. He speaks to claim departments and loss adjuster on behalf of both insurers and insured. Besides, a broker represents the viewpoints of both parties if needed.
Often, people presume that by omitting the role of a mediator like an insurance broker, one can save a sufficient amount, which is a total myth. Paying to a broker is much better than directly spending money on insurance. The brokers handle your insurance needs professionally by estimating the risks involved and ultimately helping you select a policy that adequately insures you. Hiring a broker for business purchase insurance will help you to lower the risk because of the broker’s skill at evaluating the business risk.
Who is a Web Aggregator?
A web aggregator is a mediator that maintains a website to provide a platform entailing insurance prospects about the information of various products, price comparison, etc. Web aggregators are insurance portals that enable you to compare products and create a direct link amidst you and the insurer for purchase. A web aggregator is a registered company under the Companies Act, which has an approval of IRDAI. Its function is to maintain an insurance website wherein informing about a diverse range of insurance products and difference insurers.
Fundamental Roles of a Web Aggregator
The first and foremost role of a web aggregator is to provide an extensive comparison across numerous insurance products. Here are the other essential responsibilities of web aggregators:
- Web aggregators have to display all the relevant information of insurers in a set format on its website.
- He is not allowed to display any endorsements, rankings, ratings of best sellers of insurance products. Moreover, an aggregator can’t display any other product other than insurance products.
- Web aggregators have to ensure that there is no inconvenience in transfer of calls or in the process of policy exchange.
Benefits of Web Aggregator
A web aggregator provides an array of benefits, some are as follows:
- A Legitimate Mode of Purchase
Many people are suspicious of purchasing insurance online as they fear that the policy might not be authentic. However, they don’t realize that the available online policies with aggregators are truly authentic. Even reputed banks and insurance companies rely on web aggregator platforms to sell their policies. At online portals, the policy is issued by the bank or an insurer so there is no point in being apprehensive.
- Convenience of buying Insurance Policies from Anywhere
The central benefit of online web aggregators is that it enables you to purchase insurance policies as per your convenience. The customers can buy the policies from anywhere, be it their home, office, or even during a vacation. One only needs an internet connection and a clear understanding of your requisites. Once you have selected the policy of your wish, you just have to fill your details, and you can proceed with the transaction.
- Saves Time
Web aggregators save a substantial amount of time and effort invested in comparing eligibility, quotes, and multiple charges offered by different insurers by providing a comparison at one go.
Perks of Purchasing Insurance from an Insurance Broker v/s Web Aggregators
Both insurance brokers and web aggregators serve as an efficient method to purchase insurance. Let’s draw a difference between an insurance broker and web aggregators to perceive which one is better than the other:
- Ease of payment
It is easier to make payments of insurance policy via the online portal than it is offline. Therefore, it’s more convenient to buy insurance through web aggregators.
- Time Effective
When you take insurance through an agent, you are likely to waste more time as compared to buying insurance offline. Web aggregator is more swift in functioning that allows you to make payment in fractions of seconds.
Thus, despite insurance brokers being a potent mode of insurance policy, web aggregators seem to be better, quicker, and more adequate.