Insurance Regulator Targets High Costs and Mis-selling Practices
· Business · Business Standard
The Insurance Regulatory and Development Authority of India is implementing new measures to curb excessive distribution costs and curb the mis-selling of insurance products. The regulator aims to streamline the commission structure for agents and intermediaries to ensure better value for policyholders. These changes are designed to reduce the high upfront costs that often lead to poor product suitability for consumers. By tightening oversight on sales practices, the authority intends to improve transparency and trust within the insurance sector. The specific implementation timeline and the exact impact on existing commission caps are expected to be detailed in upcoming regulatory circulars.
Why it matters
The move directly impacts insurance buyers by potentially lowering policy costs and protecting them from unsuitable financial products, while forcing insurance companies to overhaul their distribution and commission models.
Read the original report — Business Standard
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