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The Insurance Regulatory and Development Authority of India (IRDAI) is considering reintroducing product-level caps on commissions for insurance intermediaries, a mechanism discontinued in April 2023.
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India
Who
Insurance Regulatory and Development Authority of India (IRDAI), HDFC Life, ICICI Prudential Life, Aditya Birla Sun Life, LIC, Financial Conduct Authority (FCA), Monetary Authority of Singapore, Insurance Brokers Association of India (IBAI)
What
The Insurance Regulatory and Development Authority of India (IRDAI) is considering reintroducing product-level caps on commissions for insurance intermediaries, a mechanism discontinued in April 2023.
When
Sat, 13 Jun 2026 01:42:52 GMT · 4h 24m ago
Where
India ·
Why
This consideration comes as the total commission outgo in India's life insurance sector rose 18% year-on-year against a premium growth of only 6.73%, indicating distribution costs are rising nearly three times faster than sales volume, alongside concerns regarding mis-selling.
The Frontline Impact
How this affects you
Reintroducing commission caps could negatively affect the economic viability of insurance agents, particularly in underserved tier 2 and tier 3 cities, potentially hindering India's "Insurance for All by 2047" vision by causing agents to exit crucial geographies and penalizing the broader intermediary ecosystem, including brokers and agents without equivalent leverage.
Story chain
2 events in this thread- Currently Reading4h 24m agoThe Insurance Regulatory and Development Authority of India (IRDAI) is considering reintroducing product-level caps on commissions for insurance intermediaries, a mechanism discontinued in April 2023.
- Markets4h 24m agoThe IRDAI is reportedly considering reintroducing product-level caps on commissions for insurance intermediaries, a mechanism previously set aside in April 2023.Open article