Assessment Of IRDA E-Commerce Insurance Self Network Platform

This article focuses on gaining the knowledge to readers about IRDA E-Commerce Insurance Self Network Platform guidelines established for making online insurance transactions through e-commerce which is gaining popularity among both buyers and sellers in today’s digital world.

Even in the insurance market, registered players are looking at online venues to promote their goods. In light of this, the Insurance Regulatory and Development Authority of India (IRDA) announced guidelines on insurance via e-commerce using Insurance Self Networking Platform (ISNP) on March 9, 2017.

Now let’s shift our focus on discussing what these guidelines are.

IRDA E-Commerce Insurance Self Network Platform Guidelines

• On March 9, 2017, the Insurance Regulatory and Development Authority of India announced guidelines pertaining to insurance e-commerce, IRDA/ INT/ GDU ECM/ 055/03/2017.  

• An Insurance Self-Network Platform is an electronic platform set up with the intention of conducting insurance e-commerce activity. Such platforms can only function with IRDA’s authorization. 

• According to these regulations, anyone wishing to sell insurance online must set up a digital platform known as an Insurance Self-Network Platform and adhere to all of the regulations.  

• These standards must be followed by current ISNPs, insurers, and insurance intermediaries who have previously established their own ISNPs or insurance portals for the sale and service of insurance products. These criteria must be followed by them. 

• An external CERT-In Empaneled Company or CISA Auditor shall examine the operation of the ISNP and the controls, system, process, and safeguards put in place by the ISNP at least once a year. 

• The Applicant must provide the CERT-in Auditor’s report and ISNP’s information security management system to the Board or a subcommittee for review. 

• Insurers who have established an ISNP must guarantee that the code of conduct and performance of the individuals in charge of their ISNP are satisfactory.  

• Moreover, the information on the website, the processes, procedures, and any other mechanism by whatever name named, displayed, and executed on the platform should be open for inspection and scrutiny at all times. 

Objectives of IRDA E-Commerce Insurance Self Network Platform Guidelines

• The primary objective of these guidelines are to establish standards for performing insurance operations via e-commerce. 

• To implement internal monitoring controls in place for data processing systems. 

• To guarantee ISO/IEC 27001 – Information Security Management System compliance. 

• To guarantee that any negative results that affect policyholders are reported to the IRDA. 

Importance of IRDA E-Commerce Insurance Self Network Platform Guidelines

• Nowadays, many firms use the internet to gain a competitive edge even though the insurance industry has been a little slow to catch up. Hence, the insurance sector finally opted to develop e-commerce in the insurance domain. 

• Insurance Regulatory and Development Authority of India via Insurance Self Network Platform has allowed insurers or insurance intermediaries to conduct insurance e-commerce operations in India that helps brokers or firms to sell insurance at a lower cost. 

• Given the prevalence of e-commerce in all types of products and services, the IRDA has developed this platform. ISNP can be set up by any insurer or insurance intermediary, such as insurance brokers, corporate agents, or web aggregators. 

Salient Features of IRDA E-Commerce Insurance Self Network Platform Guidelines

• Digital Platform – ISNP is a digital platform that can be used for the sale or service of insurance policies. Insurance plans must be sold digitally in accordance with it standards. 

• Payments Authentication – Premium payments in the form of e-wallets have been approved by the e-commerce rules. Cash backs, promotional discounts, or incentives are expressly banned by IRDA’s code of conduct. Fees, charges, and payments permitted by IRDA as commission income and rewards to Insurance Agents/Intermediaries can be paid or shared by market participants in order to utilize an ISNP. 

• Misdirected Internet Traffic Non-Allowance – ISNPs are strictly prohibited from accepting misdirected internet traffic or references from sources other than market participants. 

Benefits of IRDA E-Commerce Insurance Self Network Platform Guidelines

• IRDA e-commerce ISNP is viewed as an excellent channel for increasing insurance business and financial inclusion. 

• IRDA e-commerce ISNP is predicted to reduce the cost of doing insurance business. 

• IRDA e-commerce ISNP guidelines are a new avenue for marketing and purchasing insurance goods. 

• For non-life insurers, online products can be made available at significantly cheaper costs. 

• It will increase demand for house holders especially health and accident-related insurance plans among middle-class people who are not approached by brokers. 

• The IRDA compensates marketers who are registered with e-commerce insurance self-network platforms. 

The Conclusion

Hence from the above discussion, we can conclude this article by saying that to register insurance applicants via e-commerce, ISNP in the IRDA Insurance license category is a safe approach for the authority to keep track of them.

The IRDA will monitor and audit the insurance activities enrolled in the ISNP on a regular basis. According to a recent survey by Google, over 200 million individuals prefer to buy and renew their insurance policy online. The IRDA has also claimed that e-commerce insurance standards are part of the developmental mandate, and it encourages e-commerce in cyberspace. 

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