Web aggregators have redefined insurance distribution by offering transparent, instant comparisons and seamless digital onboarding. In India, Policy Bazaar (PB Fintech) sourced ₹ 6,135 crore of insurance premiums in Q3 FY25 (44% YoY growth) and delivered operating revenue of ₹ 1,292 crore (+48% YoY), with a net profit of ₹ 72 crore. The platform boasts 96.8 million registered users and 19.4 million transacting users as of 31 December 2024, having sold over 44.3 million policies. Globally, the InsurTech market reached USD 7.87 billion in 2023 and is projected to grow at a 52.7% CAGR to USD 152.43 billion by 2030, though venture funding to InsurTech startups fell 45% YoY to USD 4.6 billion in 2023. The standalone insurance aggregator segment alone grew from USD 28.76 billion in 2023 to USD 35.73 billion in 2024 (24.2% CAGR) and is expected to reach USD 85.51 billion by 2028. Regulatory frameworks — from India’s IRDAI Web Aggregator Regulations (effective 13 April 2017) to the EU’s Insurance Distribution Directive (transposed by 23 February 2018) and the U.S. state-level licensing regime—continue to evolve in response to this digital disruption.

Insurance web aggregators are digital platforms that gather quotes and policy details from multiple insurers, enabling consumers to compare options on premium, coverage, and insurer credibility in real-time. By disintermediating traditional brokers, they lower search costs, accelerate purchase cycles, and leverage data to personalize offerings.

Scale & Performance

Policy Bazaar, operated by PB Fintech, sourced ₹ 6,135 crore of insurance premiums in Q3 FY25—a 44% increase year‑on‑year. Its consolidated operating revenue rose 48% YoY to ₹ 1,292 crore, and it posted a net profit of ₹ 72 crore in the same quarter. As of 31 December 2024, the platform had 96.8 million registered users and 19.4 million transacting users, and it has issued over 44.3 million policies since its inception.

Business Model & Technology

PB Fintech’s value proposition includes commission‑free aggregation, AI‑driven product recommendations, and seamless digital onboarding through OTP‑based e‑KYC and remote signature capabilities. These features have driven customer satisfaction scores above 90% and enabled rapid scaling across 18.9 thousand pin codes in India.

Market Size & Growth

The global InsurTech market was valued at USD 7.87 billion in 2023 and is forecast to expand at a CAGR of 52.7% from 2023 to 2030, reaching USD 152.43 billion by 2030. In 2024, revenue generation across InsurTech segments totaled USD 7.87 billion, with North America dominating due to high digital adoption rates.

Funding Trends

Despite strong market growth projections, venture funding to InsurTech startups fell 45% YoY to USD 4.6 billion in 2023, the lowest level since 2017. Preliminary data suggest funding remained subdued in 2024, with global InsurTech funding dropping a further 5.6% YoY to USD 4.25 billion.

Aggregator‑Specific Market

The standalone insurance aggregator market grew from USD 28.76 billion in 2023 to USD 35.73 billion in 2024 (24.2% CAGR) and is projected to reach USD 85.51 billion by 2028. An alternate forecast estimates the segment at USD 51.77 billion in 2024, rising to USD 57.96 billion in 2025 and USD 160.11 billion by 2034 (11.95% CAGR).

Consumer Impact

Platforms like Compare.com aggregate quotes to help U.S. consumers save an average of USD 66 per month on auto insurance, while others report annual savings of up to USD 867 by switching via comparison sites.

India

The IRDAI (Insurance Web Aggregators) Regulations, 2017, effective 13 April 2017, prescribe licensing, net worth, disclosures, and data security requirements for web aggregators. Regulations mandate a clear display of commissions, protection of customer data, and continuous compliance.

European Union

Directive (EU) 2016/97 on insurance distribution (IDD) was adopted on 20 January 2016 and required Member States to transpose it into national law by 23 February 2018. The IDD imposes conduct‑of‑business rules, product governance, and “best‑interest” duties on digital distributors.

United States

Insurance distribution in the U.S. remains state‑regulated, with no unified federal framework. Web aggregators must secure producer/broker licenses in each state of operation, a significant barrier to national scale.

APIs lie at the heart of aggregator platforms, enabling real‑time data exchange with insurers. Insurance data APIs streamline quoting, underwriting, and policy issuance by automating data aggregation and decisioning. Machine learning models further personalize recommendations and detect fraud, while cloud‑native architectures ensure scalability.

Key challenges include margin pressure—KPMG projects up to 10% premium compression in mature markets—data privacy under GDPR and India’s forthcoming DPDP Act, and regulatory arbitrage across jurisdictions. Cybersecurity remains paramount: PolicyBazaar acknowledged a data breach of 50 million records in July 2022.

Embedded Insurance: In‑context policies at checkout (e.g., travel, electronics)
Open Insurance: Data‑sharing mandates may level the playing field.
Platform Partnerships: Traditional insurers acquiring or partnering with aggregators to secure digital distribution.

Web aggregators like PolicyBazaar have fundamentally reshaped insurance distribution through transparency, speed, and technology. As global InsurTech matures, aggregators will continue challenging legacy channels, compelling insurers and regulators to innovate around partnerships, product governance, and consumer protection.