New Delhi, Sept. 24 -- The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a major overhaul of the insurance distribution framework, including a simpler three-tier architecture, lower expense limits, revamped commission structures and stronger safeguards against mis-selling, as it seeks to reduce distribution costs and improve transparency for policyholders.

The insurance regulator released a public consultation paper on "Recalibrating Economics of Insurance Distribution", outlining reforms covering distribution structure, expenses, commissions, market conduct, transparency and the use of digital infrastructure. The proposals are aimed at creating a more customer-centric, competitive and cost-efficient insura...