IRDAI reviews more than 650 responses to commission overhaul proposal
Business
India's insurance regulator, IRDAI, is sifting through more than 650 stakeholder responses to its big proposal: changing how much commission agents and distributors can earn.
The feedback comes after a consultation paper dropped in September 23, with the goal of curbing distribution costs and improving transparency.
IRDAI proposes 2% credit life commissions
One major change would slash credit life insurance commissions from 40% down to just 2%.
While IRDAI says this could make things fairer and cheaper for customers, many in the industry are worried; brokers say their revenue could fall by 60% if these rules kick in as expected from April 2027.
IRDAI Chairman Ajay Seth said they will carefully review all the feedback before deciding when these new rules will actually roll out.