RBI undecided on IRDAI commissions, Sanjay Malhotra stresses customer protection
The Reserve Bank of India hasn't yet decided how it feels about the insurance commission changes suggested by IRDAI, the insurance regulator.
RBI Governor Sanjay Malhotra says these draft rules are all about protecting customers: think lower costs and less chance of being sold something you don't need.
Before anything is set in stone, IRDAI plans to hear out both industry folks and consumer groups.
IRDAI proposes insurer expense caps
IRDAI wants commissions for selling insurance to depend on how tricky the sale is, not just a flat percentage.
They're also looking to limit how much life insurers can spend running their business, capping expenses at 15% of premium income within two years, then dropping to 12.5% over five years.
General insurers would see similar cuts. Plus, there's a small fee reduction that could help insurers save some cash.
Feedback on these proposals is open until October 25, 2026.