India, Sept. 24 -- For insurance distributors, the commission earned on every policy is central to their business model. It determines how much they can spend to acquire customers, the products they prioritise, and the economics of their partnerships with insurers.

This equation may now change.

The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a sweeping overhaul of the insurance distribution ecosystem in its consultation paper 'Recalibrating Economics Of Insurance Distribution'.

The proposals come more than three years after IRDAI removed product-wise commission caps in April 2023 and shifted to an expenses of management (EoM) framework, giving insurers greater flexibility in determining distributor payo...