New Delhi, Oct. 6 -- Over the past few weeks, there has been considerable discussion around the Irdai consultation paper on distribution reforms. A central premise of the paper is that insurance commissions are too high and contribute to the difficulties policyholders face.

Insurance is a diverse industry, and the challenges vary across segments. Retail health, motor and credit life insurance each merit their own analysis. I write about group health insurance for company employees, a segment I know well. It is a large, growing market in which intermediaries play a significant role. But here, commission is not the central issue.

Before 2017, the commission allowed for brokers was 17.5% of premium. Subsequently, until 2023, the commission...