New Delhi, Nov. 13 -- Nearly 26 years after it was formed, the Insurance Regulatory and Development Authority of India (Irdai) seems ready to shift focus from developing the industry to holding it accountable.

In its consultation paper on distribution reforms, the regulator laid bare an endemic problem: insurance products are being mis-sold to consumers, while commissions to the intermediaries are growing faster than the industry that pays for it.

Mint has long argued that life insurance policies are sold as investment traps with only a sliver of insurance, leaving customers to abandon them midway while intermediaries walk away with impunity.

The issue is particularly acute with banks, which have forced insurance onto borrowers and sol...