THE RISE AND REGULATORY OVERSIGHT OF INSURANCE AGGREGATOR PLATFORMS: IMPACT ON POLICYHOLDER CHOICE AND LITERACY IN INDIA

Abstract

Insurance web aggregators have emerged as transformative intermediaries in India's insurance distribution ecosystem, fundamentally altering how consumers access and purchase insurance products. This paper examines the regulatory framework governing these digital platforms, their impact on consumer choice and decision-making, and their role in enhancing insurance literacy. Through analysis of market data, regulatory documents, and consumer behavior patterns, the study reveals that while aggregators have significantly improved transparency and accessibility— contributing to explosive market growth from ₹19.3 billion (2021) to a projected ₹179.26 billion (2035)
—persistent challenges remain. Insurance penetration stands at only 4.2% of GDP, with acute literacy deficits particularly in rural areas. The emergence of Bima Sugam as neutral Digital Public Infrastructure represents a watershed moment that could potentially double insurance penetration by addressing systemic barriers around accessibility, trust deficits, and conflicts of interest inherent in commission-driven models. This research contributes to understanding how digital intermediation platforms can balance commercial incentives with social objectives of universal financial security, offering policy recommendations for enhancing consumer protection while fostering innovation.