Let commissions fall: Why we should welcome the Irdai reforms
New Delhi, Oct. 7 -- Between fiscal years 2022-23 and 2024-25, remuneration paid to life corporate agents rose 125%, while new business premium increased 28%, according to a recent consultation paper by the Insurance Regulatory and Development Authority of India (Irdai).
Similarly, broker commissions in general insurance rose 173%, against 37% growth in premiums sold through that channel.
In a country where most households remain uninsured, high, front-loaded distribution incentives do not appear to be widening coverage. These figures echo concerns raised by the inter-regulatory committee on household finance, which one of us chaired in 2017.
Irdai's consultation papers are therefore a much-needed step towards rationalizing distributio...
Click here to read full article from source
इस लेख के रीप्रिंट को खरीदने या इस प्रकाशन का पूरा फ़ीड प्राप्त करने के लिए, कृपया
हमे संपर्क करें.