Faster Policy Issuance with Account Aggregators – Here’s How It Works

What Is an Account Aggregator?

An Account Aggregator (AA) is regulated by the Reserve Bank of India that enables you to share your financial information, such as income details or bank statements—safely and with your consent.

Here’s what makes AAs unique:

• Consent-based: Your data is shared only after you approve it.
• No data storage: AAs do not store or access your information.
• Secure transmission: Data is shared directly between financial institutions and the insurer using encrypted channels.
  
• One-stop solution: Instead of submitting multiple documents, you authorise data sharing from a single platform.

This system simplifies the process of data exchange, while keeping you in full control of what gets shared and for how long.

 

Why Is Financial Data Needed in Life Insurance?

When you apply for a life insurance policy, insurers need to:

• Understand your financial profile and ability to pay premiums regularly
• Conduct underwriting to assess the appropriate coverage for you
• Comply with regulatory requirements and verify income proof

This typically requires documents like income tax returns, salary slips, or bank statements etc. With AAs, these can be verified—reducing time and paperwork.

 

How Account Aggregators may Help Speed Up Policy Issuance

Here’s how the AA system may contributes to faster life insurance issuance:

1. Real-time Access to Financial Data

   Once you give consent, your bank or financial institution sends the required data directly to the insurer within minutes. This eliminates delays caused by uploading or physically submitting documents.

   
   

2. Fewer Follow-ups and Clarifications

   Manually submitted documents can sometimes be unclear, outdated, or missing pages. With AAs, data comes directly from the source, making it reliable and reducing the need for re-submission or verification.

   
   

3. Instant Verification

   The information shared through AAs is digitally authenticated. This allows insurers to quickly verify details like Account ownership, activity, presence of income etc, helping them make quicker underwriting decisions.

   
   

4. Simplified User Experience

   You no longer need to track down old bank statements, print documents, or scan and upload files. The AA allows you to manage everything from your mobile phone or computer.

 

Step-by-Step: How It may Work for seamless Policy Issuance

Here’s a breakdown of how you can use an AA to share your financial data when applying for a life insurance policy:

 

Step 1: Apply for a Policy

Begin your policy application online or offline. When asked to share income or bank details, you’ll be given the option to do it via an Account Aggregator.

 

Step 2: Provide Consent

You will be redirected to the AA platform, where you:

• Select the bank or financial institution that holds your data
  
• Review what information will be shared (e.g., past 6 months’ bank statements)
  
• Approve the request by giving digital consent

The entire process is transparent and secured.

 

Step 3: Authenticate and Share Data

You will verify your identity using an OTP or login credentials. Once confirmed, your bank sends the requested data directly to the insurer via the AA platform.

 

Step 4: Insurer Receives Verified Data

The insurer gets the data instantly and uses it to:

• Assess your financial profile
  
• Complete underwriting
  
• Confirm policy suitability

As the data is digitally verified and complete, the processing time is significantly reduced.

 

Step 5: Seamless Policy Issuance

With all necessary documents and verification in place, your policy can be approved and issued more quickly, smoothly, depending on other checks and policy type.

 

Advantages of Using AAs for Life Insurance

Using Account Aggregators brings benefits such as:

 

Convenience

You don’t need to visit a branch, submit physical papers, or track down financial documents.

 

Security and Privacy

Your data is shared only with your permission. It is encrypted and never stored by the aggregator.

 

Transparency

You can view and track what data is shared, with whom, and for how long. You can revoke access any time.

 

Accuracy

Data shared is current and directly sourced, reducing the risk of errors in underwriting.

 

Is It Mandatory to Use Account Aggregators?

No, the use of Account Aggregators is completely optional. You can still choose to upload or submit your financial documents manually if you prefer. However, using an AA can speed up the policy issuance process as Insurers receive real-time, verified data directly from Financial Information Providers (FIPs), reducing manual errors and also reduces paperwork.

 

Final Thoughts

The Account Aggregator framework marks a major step forward in making life insurance more accessible and efficient. By enabling real-time, secure sharing of your financial data, AAs help insurers make quicker decisions, resulting in faster policy issuance.

If you’re looking for a simple and smart way to apply for a life insurance policy, consider using the AA option. It offers convenience, transparency, and peace of mind—all while saving you time.