New Delhi, Sept. 21 -- The Insurance Regulatory and Development Authority of India (Irdai) is expected to soon release proposals on insurance distribution and commissions.

Industry executives Mint spoke to said the proposed discussion paper could involve a layer-wise bifurcation of commission caps, with individual agents least affected, followed by the agency channel, while banks and non-banking financial companies (NBFCs) could be the most affected. Mint explains.

Commission limits, according to industry executives, could vary by distribution channel. Individual agents would have the smallest cap, followed by agencies, with banks and NBFCs potentially receiving the highest ceiling. The differentiated structure reflects the varying cost...