One who is in the insurance agency must be aware of these two terms: insurance broker and insurance web aggregator. But for the laymen who are not in this industry, insurance web aggregator must be a new term. They must be aware of the insurance broker because it is a traditional middleman between the company and one who wants to take an insurance policy. The objective of both of them is the same, that is to connect the insurance company with the individuals and corporations who want to obtain an insurance policy. Although their purpose or objective is the same, there are many differences between general insurance brokers and web aggregators. If you want to know about the key differences between general insurance brokers and web aggregators, you must explore this blog till the end.
What is Insurance?
Insurance contracts are based on future events that are uncertain and contingent. They revolve around whether certain events will occur or not. Insurance is typically facilitated with the assistance of insurance brokers and insurance aggregators. There are multiple differences between general insurance brokers and web aggregators, but they want to achieve similar things.
Also, there are both pros and cons associated with using their services, making it important to choose carefully. In the insurance arrangement, three key parties are involved. The party seeking insurance, whether an individual or a company, is referred to as the insured. The entity providing the insurance policy to the insured is known as the insurer. There is also a third party, the nominee, who plays an indirect role in the contract. Some of the key forms of Insurance in India are:
- Life Insurance
- Health Insurance
- Motor Insurance
- Travel Insurance
- Home Insurance
- Property Insurance
- Business Insurance
- Crop Insurance
- Marine Insurance
- Personal Accident Insurance
- Critical Illness Insurance
- Cyber Insurance
- Rural Insurance
- Liability Insurance
Insurance Brokers V/S Insurance Web Aggregators
An insurance broker is a facilitator who unites those who want to invest in policies for insurance with the individuals or organisations who want to sell them. On the contrary, people started carrying out the same activities using technology in this modern, technologically sophisticated era by using web pages. And this is known as insurance web aggregators. IWAs need an Insurance Web Aggregator License under the Insurance Act of 1938 to run their business as per the law.
Notwithstanding the fact that the two are performing identical conduct, their techniques are very varied. Insurance brokers are the traditional intermediary between the financial institution and the client. On the other end, insurance aggregators on the internet are more sophisticated versions of the same. Although there are many differences between general insurance brokers and web aggregators, they are somewhat similar. Some of the common functions of both of them are:
- Comprehensive insurance insights will be provided
- Diverse policy options will be available
- Expert policy selection will help to get the best option available
- Connecting with premier insurers as well
Key Differences between General Insurance Brokers and Web Aggregators
Although there are many differences between general insurance brokers and web aggregators, their aim is the same. Out of multiple differences between general insurance brokers and web aggregators, some of them are mentioned below:
| General Insurance Brokers | Insurance Web Aggregators |
| They connect personally with the customers | They connect through the website with the customers |
| One-on-one conversion happens between the broker and the customer | As it is an online platform, one cannot have one-on-one conversion here |
| Brokers are not connected with all the sellers of the insurance policies | Web aggregators have connections with all the sellers of insurance in the market |
| The number of policies is less in comparison to web aggregators | As they are connected with almost all the sellers of the insurance, the number of policies available is more |
| Sometimes, they conceal the facts | They provide true information |
| They are not answerable to anybody as they are self-employed | They have to answer the Insurance Regulatory and Development Authority |
| They are mostly thinking about their personal interest | They think about customers |
| Their prime focus is selling policy | Their prime focus is customer satisfaction to build networking |
| They are not registered entity | They are registered entities |
| Less reliability and credibility | More reliability and credibility |
| Customer trust is not easily built | Easily build customer trust |
| It is a very old or traditional method of selling and purchasing insurance policies | It is a modern technology, friendly method of selling and purchasing insurance policies |
| Websites are not mandatory for them | They cannot work without a website, as their entire work depends on their website |
| Working in a particular area | Their area of operation is wider |
| Can not ensure transparency | Ensures transparency |
Advantages of General Insurance Brokers and Web Aggregators
Some of the advantages of the general brokers and web aggregators are:
- They’re budget-friendly.
- They use their expertise to find the right insurance policy for you.
- They work with many insurance policy provider companies to offer you the best options.
- They present multiple policy choices, so you can pick the one that suits you.
- They assist with filing claims.
- They help with all the paperwork related to your policy.
- They save you time and effort when getting insurance.
- They provide accurate information.
- You don’t have to pay them a high fee for their services if you want to buy a policy.
Conclusion
There are many differences between general insurance brokers and web aggregators, such as distinct methods and varying attributes. While insurance brokers offer a traditional, personalised approach, engaging in one-on-one interactions, web aggregators leverage technology and provide a wide array of policy options through online platforms. Brokers may lack transparency at times and have varying levels of credibility, while web aggregators, as registered entities, tend to offer more reliability and transparency, fostering customer trust more easily. Both have their advantages, such as budget-friendliness, expertise, and the ability to save time and effort, making the choice between them a matter of individual preferences and needs. To choose between them it is important to know about the differences between general insurance brokers and web aggregators.
