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Policy● Neutral for Indian equities
Insurers must compete on price, not distributor commission: Irdai chief
The brief
- IRDAI’s proposed insurance distribution reforms are not final
- Stakeholder feedback will be considered before draft regulations are issued
- Distribution reforms may affect Indian insurers and intermediaries’ sales economics
- Insurance mis-selling is arising because upfront commissions are too high: IRDAI chairman Ajay Seth
- ‘Each comment with a rationale will be carefully considered’: Ajay Seth
IRDAI’s proposed insurance distribution reforms
IRDAI proposed phased cuts to insurers’ expense limits, commission caps and a ban on compulsory loan-linked insurance bundling. The proposals triggered sharp falls in insurance stocks and prompted insurers to seek a glide path and differentiated expense limits.
Wednesday, 30 September
- Insurers must compete on price, not distributor commission: Irdai chief