India, Sept. 28 -- The proposed IRDAI amendments may result in significant modifications in the approach of life insurers to cost management and distribution of commission payments. These changes will include stricter restrictions on expense ratios and reinstating commission caps through various distribution channels. The impact of such changes will vary from insurer to insurer, depending on its portfolio of products and channel strategy. Investors need to pay attention to this issue.

Brokerage View Systematix feels that the changes suggested by the IRDA will not be very positive for the majority of the private life insurance companies because the expenses and commission structure will have to be tightened. SBI Life would be less impact...