IRDAI to cap broker and distributor commissions from early 2027
Business
Big changes are coming to the insurance world: from early 2027, IRDAI plans to set limits on how much brokers and distributors can earn in commissions across most forms of insurance, including life and health.
The main aim? Make insurance more affordable for everyone by cutting down on distribution costs and encouraging wider coverage.
Brokers warn job losses, IRDAI optimistic
While IRDAI hopes these reforms will lower prices and boost access, especially in rural areas, not everyone is convinced.
Many brokers and digital platforms worry about losing income, with the Insurance Brokers Association of India warning that up to 1 million jobs could be at risk.
Still, IRDAI believes expanding coverage could actually create new jobs as more people get insured across India.