Planning to start an ISNP. Know these facts before you do so
You can start your ISNP at any time that you want. But are you really ready? Read these facts that you need to know before starting your Insurance Self Network Platform.
An ISNP – Insurance Self Network Platform – is a type of insurance business IRDA started to promoter only after realizing the value of ecommerce.
Till now, most of the insurances were done with the usage of human brokers and insurance companies. It didn’t give any transparency to the customers who were buying the insurance policies.
To facilitate the customers with more transparency and to provide insurance companies and brokers with another way to expand their business, the government of India, via the IRDA, introduced the guidelines for ISNP.
However, as an insurance business owner, you should not just jump into starting an insurance portal just because someone said you to. There are several caveats that come with starting an insurance e-commerce portal. You have to know the facts about them before you start such an endeavour.
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This articles covers nearly all the facts that you should understand before starting an insurance ecommerce business. Read them thoroughly if you want to make your insurance portal a success.
An Insurance Agent is not allowed to setup a separate insurance network
If you’re not an entrepreneur, but an insurance agent, you’re not allowed to setup an insurance network platform. The right to start an ISNP is only reserved for corporate agents, insurance brokers and insurance companies – entities that are organizations capable of managing a web portal for insurance policies.
Before you can start an ISNP, you need to obtain the permission
The entire concept of Insurance e commerce portal was the idea of the IRDA. It has set the guidelines that those who are running the portal have to follow. Thus, before you start an Insurance Self Network Platform, you have to obtain permission from the IRDA.
ISNP is not your typical E Commerce portal
How you understand E commerce and how the IRDA understands it is different. Thus, you can’t just go about your business by just looking at your insurance portal like you would any common e-commerce portal.
The intricacies of insurance terminologies and strict regulations are weaved into the e-commerce platform. Thus, only go for such a business if you can follow the ISNP rules set by the IRDA.
Prepare to get analyzed on an yearly basis
ISNP registration is a serious business license. It gives you the power to sell your insurance policies via an e commerce platform that would be for, of and by the people.
if the IRDA gets a hint that you’re influencing the customers in any way, it won’t hesitate for a second when taking your permission away. And don’t think that you can just fly under the radar.
Insurance Regulatory and Development Authority does early audit of controls, systems, procedures and safeguards of the insurance platform. Doing so gives it a full picture of your current technological state in regards to running your insurance business.
Don’t try to file the application to get ISNP insurance permission on your own
Being self-reliant is well and good, but it’s definitely a disadvantage when it comes to getting business registrations. Entrepreneurs, trying to minimize costs as much as possible, often attempt to file the application to obtain the ISNP permission themselves. In doing so, they lose the sight of the difficulty of the process.
IRDA is one of the strictest organizations in India. It takes special care when it comes to details and documents of application and doesn’t tolerate even the smallest degree of mistakes ; something that on the first try, you can expect to make.
That’s why, you should always hire IRDA consultants to assist you. They know the application procedure inside and out and can guide you through the rough terrain of application, documentation and follow-up.