IRDAI to make commission structures public and prioritize customer needs
India's insurance regulator, IRDAI, is shaking things up with plans to make commission structures public and put customer interests first.
The idea is to stop high upfront commissions that push agents to sell policies just for quick earnings, and instead focus on what actually suits people's needs.
A consultation paper will be out soon, allowing insurers and other stakeholders to share their thoughts.
Commissions tied to complexity and retention
Commission rates could soon depend on how complex a policy is: basic term plans would get lower payouts than complicated ones like ULIPs or annuities.
Agents who help customers stick with their policies longer might earn extra rewards, making short-term selling less attractive.
The new rules are expected to roll out after feedback, with everything set for completion by January 2027.