If you're considering launching a Web Insurance Aggregator business in India, it's time to look for something else to do. The policies from the regulator IRDA are regressive and incomprehensible, and stuck in the pre-liberalization era. This is license raj. One would assume that with time, their policies would get better, but that doesn't appear to be the case. The IRDA has notified a Web Aggregator license (essentially, websites which aggregate insurance information to provide comparison for consumers) with some odd requirements (download here): 1. The IRDA is defining your business model: Web Aggregators are not being allowed to choose how they monetize. - CPA Model mandated: The IRDA is allowing them to collect leads, but not to charge insurers on a cost-per-lead basis. Instead, they're mandating a Cost-per-acquisition (CPA) business model for India, and have instructed insurers that "No charges should be paid for such leads by the Insurer." - No Advertising On Website: In addition, they're not allowing web aggregators to have advertising on their website. One can understand, if one thinks a little conservatively, that they might not allow insurance advertising on an insurance comparison portal, but the IRDA doesn't want any advertising at all. They're saying that the web aggregators cannot have any "- Display advertising of any sort, either pertaining to any product or service including insurance product or service, other financial products or service / or any other product or service in the Web Aggregators Website." - No upselling other products: Not just upselling. Web…
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