Insurers ask Irdai chief for phased commission cuts and flexible EoM limits
Insurance firms met Irdai Chairman Ajay Seth in Mumbai, requesting a gradual reduction in distribution commissions and differentiated expense-of-management caps.
Following Irdai's consultation paper that proposes sweeping cuts to product and channel commissions, senior executives from life, general and health insurers gathered with Chairman Ajay Seth. The insurers urged a step-by-step approach to lower commissions, a tiered EoM limit structure, and eased rules for group credit-life policies. They argued that an abrupt reset could destabilise distribution channels.
Why it matters
The outcome will shape how Indian insurers price policies and compensate distributors, affecting market stability and consumer premiums.
In this story
Irdai commission cutsinsurance distribution economicsexpense-of-management limitscommission glide pathgroup credit life insuranceMumbai meetingregulatory reform
