INDIAN REGULATOR PLANS TIGHTER RULES FOR AGGREGATORS

Online insurance aggregators in India are likely to have tighter rules imposed on them by the Insurance Regulatory & Development Authority (IRDA) under which aggregators would only be paid a flat fee of no more than INR50,000 ($826) for each product displayed on the aggregator site. Previously aggregators could charge insurers INR10 for each lead generated. IRDA said in a draft that web aggregators interested in continuing in the business should apply to the regulator for renewal of their licence 90 days before the expiry of the previous licence. The net worth required for setting up a business as on the date of application is INR1m. IRDA also said that no fee would be payable by any insurer to any aggregator that was not licensed by IRDA.